Ruble Strengthens Most in Week on Crude Oil, U.S. Debt Deal

The Russian currency strengthened the most in a week as oil rose and U.S. lawmakers moved toward passing a budget deal.

The ruble advanced 0.4 percent against the Bank Rossii’s target basket of dollars and euros to 37.2520 by 6 p.m. in Moscow, when the central bank stops its market operations. The yield on the government’s February 2027 bonds declined six basis points, or 0.06 percentage point, to 7.67 percent.

Senate leaders reached an agreement today before U.S. borrowing authority lapses tomorrow. Crude oil, Russia’s main export earner, gained 0.5 percent to $101.76 a barrel in New York. Russian companies started paying monthly taxes yesterday, which should buoy the ruble, according to Danske Bank S/A.

“The ruble might get support from the tax period and the improvement of global market conditions,” Dmitry Dorofeev, a strategist at BCS Financial Group in Moscow, said by e-mail.

The currency advanced 0.3 percent against the euro to 43.5000 and gained 0.5 percent against the dollar to 32.1415. An index of 20 emerging-market currencies, compiled by Bloomberg, rose 0.1 percent to 94.87.

The ruble may appreciate to 31.80 against the dollar by month-end, Dorofeev said.

The Finance Ministry sold 14.7 billion rubles of bonds due August 2023 at an average yield of 7.49 percent out of 15 billion rubles offered. It also sold 11.6 billion rubles of bonds due January 2018 at 6.77 percent out of 20 billion rubles offered, according to statements on the ministry’s website.

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