Ruble Gains Fourth Day Versus Basket Before Final Tax Payments

The ruble advanced for a fourth day as companies prepared to make final monthly tax payments. Russian government bonds climbed.

The ruble strengthened 0.3 percent to 39.1641 against the central bank’s dollar-euro basket by 6 p.m. in Moscow, when the regulator ends its daily operations. The exchange rate was little changed against the dollar at 33.7150. The government’s local-currency bonds due August 2027 rose, pushing the yield six basis points lower to 8.46 percent.

The currency advanced this week after President Vladimir Putin stoked bets for a de-escalation of the crisis after he asked lawmakers to rescind authorization they gave March 1 to use force to protect native Russians in Ukraine. Companies are due to make tax payments on their profits on June 30.

“Exporters are continuing to sell foreign currency for tax payments,” Maxim Korovin, an analyst at VTB Capital in Moscow, said by phone. “The tax period continues to support the ruble.”

The exchange rate’s 14-day relative strength index versus the basket was 29.9 today, the lowest level in a month and below threshold of 30 that indicates to some analysts that an asset is poised to reverse.

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