Ruble rises as crude oil prices recover slightly

Posted On: January 08, 2015

The ruble rose 2.9 percent Thursday to 61.46 per U.S. dollar, Bloomberg reported. The currency has gained ground amid the marginal recovery of crude oil, which reached $51.25 per barrel in London during the trading session after falling below $50 on Wednesday.

The Micex Index for Russian stocks increased 3.5 percent to 1,532.93, marking its highest level in the past month. Five-year government bond yields fell one basis point to 15.42 percent.

"People seem to be coming to the conclusion that the current Russian issues will not be short and just tied to the military conflict in Ukraine," Jean-David Haddad, an emerging markets strategists with OTCex Group brokerage in Paris, told Bloomberg. "There are some long-term bearish signals for Russia and this is what is reflected in CDS."

Reuters reported that the ruble declined about 40 percent against the dollar in 2014. Shares of Sberbank, Russia's largest bank, increased approximately 10 percent on Thursday. The bank's shares have followed the path of the ruble by rising and falling over the past few weeks after declining by 24 percent in December.

Alyona Afanasyeva, a foreign exchange analyst, told the news source that the ruble-dollar exchange rate is struggling to fall below the 60-level because of low oil prices.

Category: Industry News

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