Ruble Gains Second Day on Yellen Stimulus Bets Before Tax Period

The ruble strengthened and government bonds rose after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained, boosting appetite for riskier emerging-market assets.

The ruble appreciated 0.2 percent to 37.7764 against Bank Rossii’s target dollar-euro basket by 6 p.m. in Moscow, when the central bank stops its market operations. The yield on government bonds due February 2027 declined three basis points, or 0.03 percentage point, to 7.80 percent.

Yellen, the Fed’s vice chairman, yesterday voiced her commitment to using bond purchases known as quantitative easing to boost growth and lower unemployment that remains above 7 percent more than four years after the economy began to recover. The regular tax period, when Russian companies pay ruble-denominated taxes, starts tomorrow with payments to insurance and pension funds.

It’s only “a matter of time” before the ruble advances to 37.50 against the basket as the tax period “increases its importance in the coming week,” Evgeny Koshelev, an analyst at OAO Rosbank in Moscow, said in e-mailed comments.

Oil advanced 0.6 percent to $107.79 a barrel in London, extending a 1.2 percent gain yesterday. An index of the 20 most actively-traded emerging-market currencies was little changed at 92.6522, according to data compiled by Bloomberg.

The ruble strengthened 0.1 percent against the dollar to 32.6920 and traded up 0.3 percent versus the euro at 43.9925.

Russian corporate taxpayers will pay 505 billion rubles ($15 billion) to 595 billion rubles during the November tax period, according to OAO Promsvyazbank. Mineral-extraction tax and excise duties of 270 billion to 300 billion rubles come due on November 25, Alexey Egorov, an analyst at the Moscow-based lender, said in an e-mailed note.

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