MOSCOW: Rising oil prices sent the Russian ruble to its strongest level since the start of the year Thursday, a day before the central bank is expected to hold its key rates steady.
The Russian currency was trading at 68.04 to the dollar after falling to a historic weak point in January. It stood at 82.45 rubles to the dollar on January 20.
Against the euro Thursday, the ruble was at 76.85, its strongest level for nearly three months.
The ruble's recent slump at the beginning of this year forced the central bank to halt a gradual decrease of the base rate which was cut four times last year from a high of 17 percent to the current 11 percent.
The reduction in the rate has done little to help borrowing costs in Russia's recession-hit economy, hurting from a lingering oil price slump and Western sanctions over Ukraine.
Oil prices have however firmed slightly recently on hopes key producers will agree next month to limit output amid a global supply glut, thus helping the ruble.
But don't expect that will be sufficient for the the Bank of Russia to resume cutting interest rates, and will instead hold its key rate steady at its regular monetary policy meeting Friday.
Oleg Kouzmin, an economist with Renaissance Capital, said the central bank should hold off on a rate change for the time being because "the exterior economic situation remains very volatile".
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