Russian Ruble Goes Up with Crude

The Russian ruble went higher against the US dollar as crude oil rallied after the positive developments in Europe reinvigorated markets and returned risk appetite to investors.

Germany and France postponed the planned bailout for Greece after the country’s government announced the intention to hold a referendum. Now, after Greece scrapped its plans for the referendum, investors became more interested in buying higher-yielding assets, like commodities and currencies of emerging markets, rather than safer ones. The interest rate cut performed by the European Central Bank reinforced the positive sentiment about the developments in the Eurozone.

Most commodities rallied and crude oil was among them. Futures for crude gained 1.2 percent to $93.58 per barrel. Oil is the main export of Russia. Investors pared their bets on further decline of Russia’s currency after the fears subsided on currency markets.

USD/RUB fell from 30.4815 to 30.4752 today as of 00:20 GMT, following the advance to the intraday high of 30.6700. EUR/RUB gained from 42.1155 to 42.1300.

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