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 prices which additionally pushed Russia’s benchmark MOEX inventory index to a record high, 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 foreign money jumped to an 11-week high versus the dollar within the earlier session after knowledge confirmed a weaker-than-expected rise in U.S. inflation final month, earlier than returning in the direction of the 73 mark, with traders now waiting for the Federal Reserve’s Sept. 21-22 assembly.

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“The better-than-expected CPI print in the U.S. lowers the chance that the Fed will cut its stimulus program next week, supporting the risk-trade,” mentioned BCS Global Markets.

Weekly OFZ bond auctions may additionally assist the rouble.

OFZs, which Russia makes use of to plug price range holes, have regained recognition amongst international traders as issues about sanctions have waned and on expectations their prices may rise greater as soon as the central financial institution begins slicing charges sooner or later subsequent yr.

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

Oil dynamics have been a uncommon vivid spot within the largely damaging exterior outlook, analysts mentioned, after weaker-than-expected Chinese financial knowledge bolstered worries about slowing world progress.

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“Although the oil market is looking strong, we fear a downturn in the momentum of oil prices and consequently weakening support for the rouble, due to the weakness of the general market environment,” Promsvyazbank analysts mentioned in a be aware.

Russian inventory indexes climbed. The rouble-based MOEX Russian index was 0.3% greater at 4,064.8 factors, after touching an all-time high 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 Editing by Toby Chopra and Mark Potter)

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