Ruble Advances for Fourth Day as Crude Oil Rises, Taxes Loom
The ruble strengthened for a fourth day as oil, Russia’s chief export earner, rose and companies converted foreign currency revenue to pay taxes next week.
The ruble appreciated 0.1 percent against the dollar to 31.1530 by 7 p.m. in Moscow. It fell 0.3 percent versus the euro to 40.1150 and dropped 0.1 percent against the central bank’s euro-dollar target basket.
Urals crude, Russia’s chief export earner, added 0.2 percent to $110.28 a barrel on signs China’s manufacturing is expanding. The payments will total about 400 billion rubles ($12.8 billion), according to Alexei Egorov, an analyst with Moscow-based OAO Nomos Bank.
“Rising oil prices remain the main growth factor for the ruble,” Dmitry Polevoy, a Moscow-based economist at ING Groep NV, said in an e-mailed note today. “The tax period is also supportive.”
Non-deliverable forwards showed the ruble at 31.6175 per dollar in three months compared with 31.6420 yesterday.
The extra yield investors demand to own Russia’s dollar bonds over U.S. Treasuries fell one basis point to 192, according to JPMorgan Chase & Co.’s EMBI Global Index. An index of five-year government bond yields fell four basis points to 6.67 percent.
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