The ruble rose for a second day against the dollar, earlier touching the strongest level since May, as oil climbed to a four-month high and the government signaled the central bank is resisting an interest rate cut.
The ruble depreciated to its weakest level in a week against the dollar amid speculation Moscow’s heat wave and wildfire-induced smog is forcing traders and investors to reduce their bets and leave the city.
The ruble weakened against the euro for the first time in eight days, ending its longest rally in more than a year, on speculation Europe will act to contain its debt crisis and as demand ebbed for local currency to pay taxes.
The ruble declined to its weakest close since September 2009 against the central bank’s target dollar-euro basket as oil retreated. The weakening currency forced Bank Rossii’s so-called floating corridor higher, according to Citigroup Inc.