Ruble Bounces Back on Oil Price Recovery

The ruble bounced back to growth against the greenback in MICEX-RTS trade on Monday, as oil prices rose on the back of euro appreciation against the dollar in international foreign exchange trading, indicating growing European demand.

As of 4:30 p.m. Moscow time (12:30 GMT), the ruble gained 4 kopecks against the dollar to 33.64 and shed 19 kopecks against the euro to 41.84. The ruble value of the dollar/euro bi-currency basket was down 9 kopecks to 37.36.

The ruble’s rise against the dollar was bolstered by the rise of Brent benchmark crude oil to close to the $97 per barrel mark, after its slump to $95.63 per barrel earlier on Monday trading. The oil recovery follows the trend of the euro’s attempt to rise above 1.24 euros to the greenback in international forex trading.

The ruble has been in a freefall in the past few days over increased investors concern about the eurozone sovereign debt crisis and weak macroeconomic data from the U.S. and China indicating further slowing of the global economy.

Russia’s central bank stayed away from active intervention in the domestic foreign exchange market during most of last week, letting the ruble value of the dollar/euro bi-currency basket move to the upper boundary of the 32.15-38.15 ruble range set by the regulator and started to intervene more actively only from Friday.


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