Ruble Soars to 1-Month High on Favorable Chinese Manufacturing Report

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Ruble Soars to 1-Month High on Favorable Chinese Manufacturing ReportRussia’s ruble surged to its highest level in one month after a measure of Chinese manufacturing activity rose while President Vladimir Putin supported a ceasefire in Ukraine.

The ruble accelerated 0.6 percent to trade at 34.2685 a dollar at the close of trading in Moscow after data showed that Chinese manufacturing purchasing managers’ index rose more than expected. Putin threw his weight behind a truce proposed by Ukraine President Petro Poroshenko despite issuing a combat alert to soldiers.

The yield on government bonds that mature in February 2027 plunged three basis points to close at 8.59 percent. The Micex Index of equities remained firm at 1,486.30, which was posted on Friday.

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The Canadian dollar surged 0.3 percent to a 5 ½ month high of about C$1.0725 per U.S. dollar. The Canadian currency had earlier surged on Friday after the nation’s inflation rate grew to 2.3 percent in May, its highest level in 27 months. This surpassed the Bank of Canada’s target of 2 percent, reported Reuters.

The euro briefly fell after the European Central Bank President Mario Draghi said over the weekend that interest rates will remain low for some time and that quantitative measures are still part of its arsenal to stimulate growth and the low inflation in the euro area. The 18-nation currency fell to $1.3587 before stabilizing at $1.3600, its closing figure on Friday in New York.

The U.K. pound remained steadier, hovering 0.1 percent higher at $1.7018 as investors speculated that the Bank of England may hike interest rates this year. The sterling traded close to Thursday’s 5 ½ year high of $1.7064. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com