The ruble gained to the strongest level per euro since 2008 on Thursday, forcing the Central Bank to ease its trading band for the 20th time in a month, as concern grew that Greece may struggle to get European Union financial assistance.
The currency added 0.3 percent to 39.98 versus the euro in Moscow trading, its strongest close since Dec. 23, 2008. It lost 0.2 percent to 29.22 per dollar, leaving the currency 0.1 percent stronger at 34.07 against the Central Bank’s target currency basket.
The ruble gained for a second day against Europe’s common currency as Michael Meister, chief finance spokesman for German Chancellor Angela Merkel’s party, said attempting a Greek rescue without the International Monetary Fund “would be a very daring experiment.”
The Central Bank set a new trading band of 34 to 37, compared with 34.10 to 37.10 previously, allowing the ruble to appreciate after buying at least $1 billion of foreign currency, said Alexei Borichev, head of foreign-currency trading at ING Groep.
The regulator uses the basket to manage exchange-rate swings that hurt Russian producers.
The currency basket is calculated by multiplying the dollar’s rate to the ruble by 0.55, the euro to ruble rate by 0.45, then adding them together. The ruble remains within the 26 to 41 band that the Central Bank pledged in January 2009 to defend.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.