The ruble grew by the fastest pace in two weeks after exporters rushed to benefit from the dollar’s three-day advance against the ruble to convert revenue earned from offshore operations.
The ruble grew 0.6 percent to trade at 34.2345 per dollar as of 6 p.m. close in Moscow. The currency has declined 2.1 percent versus the dollar since June 26 on Ukraine tensions. The yield on bonds denominated in ruble that mature on February 2027 fell 3 basis points to 8.56 percent.
The Russian currency rose 0.7 percent to steady at 46.5905 versus the euro and also gained by the same margin against the central bank’s basket of euros and dollars to 39.7865 on Tuesday. Most analysts are of opinion that the declining oil prices have negatively impacted the on the ruble, which extended its losses for the seventh straight day.
The Brent crude prices declined 0.6 percent to trade at $109.58 per barrel in London, the weakest since June 11. Inflation stood at 7.8 percent last month, the most since August 2011, reported Bloomberg News.
In a separate report, the Indian rupee rallied from its lowest level in two weeks on reports that the government intends to invite foreign investors to upgrade the rail network, boosting speculation that the new administration will unveil policies aimed at attracting foreign investments.
“Expectations for a growth-friendly budget are adding to the sentiment and helping the rupee,” Ankur Jhaveri, a Mumbai-based co-chief of currency and rates at Edelweiss Financial Services, told Bloomberg. “The government is likely to allow higher overseas investment in different businesses including railways, and unveil other polices aimed at boosting manufacturing.”
The rupee rallied 0.4 percent to trade to 59.79 per dollar in Mumbai trading. India’s Rail Minister Sadananda Gowda announced on Tuesday that foreign investors will be permitted to invest in railroad infrastructure. The stance may attract investments from infrastructure companies such as Bombardier Inc. and General Electric. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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