The Russian ruble retreated after its has gained as crude rallied for the third day on optimism for global economic, making Russia’s currency more interesting for investors who are willing to risk in search for higher yield.
Futures for delivery of crude oil in October rose 2.2 percent to $87.26 per barrel in New York. Optimism, caused by Bernanke’s speech on Friday, boosted commodities. The positive report about personal income and spending in the US was also helpful. Crude is the main source of export revenue for Russia.
Investors bet the Russia’s currency will decline despite some positive fundamentals. Oil may retreat in case the report from the Energy Department tomorrow would show US inventories of crude increased last week.
USD/RUB trade near 28.7875 today as of 2:29 GMT after opening at 28.7855 and falling to 28.7765.
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