Ruble Strengthens on Prospect U.S. Bailout Revived, Rising Oil

By Emma O'Brien

Oct. 1 (Bloomberg) -- Russia's ruble snapped a four-day drop against the dollar after the U.S. Senate agreed to vote on a $700 billion rescue package for the banking sector and as the price of oil advanced for a second day.

The managed currency strengthened to 25.5972 per dollar by 10:27 a.m. in Moscow, from 25.6439 yesterday, when it declined 1.3 percent. The ruble little changed at 36.1547 per euro, from 36.1407 yesterday.

The ruble was steady at 30.3462 against the central bank's dollar-euro basket, after weakening for the past three days. Bank Rossii keeps the ruble within a trading band against the basket to limit the effect of fluctuations on the competitiveness of Russian exports. The basket rate is calculated by multiplying the ruble's rate to the dollar by 0.55, the euro rate by 0.45, then adding them.

Senators have vowed to revive the bailout after it was rejected by the House of Representatives two days ago, deterring investors from buying higher-yielding, emerging-market assets.

Crude, Russia's biggest export earner, rose 1.2 percent to $101.89 a barrel, added to yesterday's 4.4 percent jump yesterday, adding to yesterday's 4.4 percent jump.

To contact the reporter on this story: Emma O'Brien in Moscow at eobrien6@bloomberg.net