Ruble Appreciates Most Versus Dollar in a Month on China Reserves, Fed Cut
The Russian currency advanced 1.8 percent to 30.735 per dollar at the 7 p.m. close in Moscow, the biggest daily gain since Oct. 27. The ruble was 0.9 percent stronger at 41.40 per euro, leaving it up 1.3 percent against the central bank’s target dollar-euro basket.
Emerging-nation assets rallied after China cut the amount of cash that banks must set aside as reserves for the first time since 2008 to safeguard growth. Markets extended gains after the Fed, Bank of Canada, Bank of England, Bank of Japan, Swiss National Bank and the European Central Bank also agreed to reduce the interest rate on dollar liquidity swap lines by 50 basis points.
“The reserve cut in China has raised global sentiment, and the ruble is stronger on that,” Gaelle Blanchard, an economist at Societe Generale SA in London, said by e-mail. “China easing quickly means growth recovering faster, and more demand for commodities.”
Investors pared bets the ruble would weaken, with non- deliverable forwards showing the currency at 31.1687 per dollar in three months’ time. Russia’s dollar Eurobonds due 2020 climbed, pushing the yield down nine basis points to 4.493 percent.
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