Ruble Fluctuates as Bank Rossii Snaps 100 Days of Interventions
The ruble moved between gains and losses after Russia’s central bank said it didn’t intervene to stem the currency’s declines for the first time since May.
The ruble climbed as much as 0.2 percent and weakened 0.1 percent before trading little changed against Bank Rossii’s target basket of dollars and euros at 37.1976 by 1:08 p.m. in Moscow. The yield on government bonds due February 2027 rose four basis points, or 0.04 percentage point, to 7.61 percent.
Bank Rossii, which announces interventions data with a lag, didn’t buy or sell foreign currency on Oct. 17, it said today. The central bank spent more than $19 billion in 100 trading sessions since May 29 to smooth exchange-rate volatility, the regulator’s data show. Bank Rossii has pared back interventions as it prepares to switch to a free-floating currency in 2015. Crude oil, Russia’s main export earner, declined 0.2 percent to $109.75 a barrel in London.
“It’s too early to speak of stabilization on the currency markets,” Denis Poryvay and Maria Pomelnikova, analysts at ZAO Raiffeisenbank in Moscow, wrote in an e-mailed note.
The ruble traded little changed against the dollar at 31.9245 and was steady against the euro at 43.6420.
The monthly tax period continues today in Russia with value-added and water taxes. Companies face about 900 billion rubles ($28 billion) of taxes this month, according to Vladimir Miklashevsky, a trading strategist at Danske Bank A/S (DANSKE) in Helsinki.
The Finance Ministry plans to announce the volume and tenor of notes it will offer at auctions on Oct. 23. The ministry sold 14.7 billion rubles of bonds due Aug. 2023 and 11.6 billion rubles of notes due Jan. 2018 last week.
“Demand has returned mainly to long-term issues,” Olga Sterina, an analyst at UralSib Capital in Moscow, said in a note to clients. “The ministry will offer notes with a duration of at least 10 years.”
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