The Russian rouble firmed on Wednesday partly in response to higher oil prices and strong demand for Russian government bonds at a treasury auction.
Prices for oil, Russia's key export, jumped by more than 2% after industry data showed US inventories fell more than expected, while major US producers evacuated rigs in the Gulf of Mexico ahead of a storm.
At 1130 GMT, the rouble gained 0.5% to 63.6 versus the dollar, recovering in thin trade from levels of around 63.9 seen at the market opening.
Against the euro, the rouble strengthened by 0.4% to 71.3.
The rouble was one of the best-performing currencies on Wednesday, particularly thanks to rising oil prices, analysts at Bank Saint-Petersburg said in a note. The Russian currency was also supported by the finance ministry's weekly auction of OFZ bonds on Wednesday. Investors tend to convert foreign currency into roubles to take part in such auctions. Demand for OFZ bonds maturing in 2025 reached 52 billion roubles ($817.16 million), exceeding the actual placement size of 15.7 billion roubles. Raiffeisen bank analysts said that such bonds with yields of around 7.3% are in demand among those investors who expect the Russian central bank to cut its key interest rate, now at 7.5%, in an "aggressive manner" in the future. The dollar-denominated RTS index was flat at 1,394 points. The rouble-based MOEX Russian index was 0.2% lower at 2,816 points.
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