Russian rouble firms, MOEX hits record high on rising oil prices

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MOSCOW — The rouble strengthened on Wednesday, supported by rising oil costs which additionally pushed Russia’s benchmark MOEX inventory index to a document excessive, because the finance ministry held two OFZ treasury bond auctions.

By 1201 GMT, the rouble was 0.3% stronger towards the greenback at 72.72 and had gained 0.2% to commerce at 85.96 versus the euro.

The Russian forex jumped to an 11-week excessive versus the dollar within the earlier session after information confirmed a weaker-than-expected rise in U.S. inflation final month, earlier than returning in the direction of the 73 mark, with buyers now looking forward to the Federal Reserve’s Sept. 21-22 assembly.

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“The higher-than-expected CPI print within the U.S. lowers the possibility that the Fed will reduce its stimulus program subsequent week, supporting the risk-trade,” mentioned BCS World Markets.

Weekly OFZ bond auctions may assist the rouble.

OFZs, which Russia makes use of to plug price range holes, have regained reputation amongst overseas buyers as considerations about sanctions have waned and on expectations their costs may rise increased as soon as the central financial institution begins reducing charges in some unspecified time in the future subsequent yr.

Brent crude oil, a world benchmark for Russia’s predominant export, was up 1.3% at $74.57 a barrel.

Oil dynamics had been a uncommon brilliant spot within the largely destructive exterior outlook, analysts mentioned, after weaker-than-expected Chinese language financial information strengthened worries about slowing international progress.

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“Though the oil market is trying robust, we concern a downturn within the momentum of oil costs and consequently weakening assist for the rouble, because of the weak spot of the overall market setting,” Promsvyazbank analysts mentioned in a word.

Russian inventory indexes climbed. The rouble-based MOEX Russian index was 0.3% increased at 4,064.8 factors, after touching an all-time excessive of 4,080.29 factors.

The dollar-denominated RTS index was up 0.4% to 1,761.3 factors, earlier hitting 1,768.70 factors, its strongest mark since August 2011.

For Russian equities information see

For Russian treasury bonds see (Reporting by Alexander Marrow Enhancing by Toby Chopra and Mark Potter)