Russian Ruble Gains on October 5 as Crude Oil Prices Rise



Russian ruble gains on favorable data; crude oil rises

The Russian ruble gained against the US dollar on October 5, 2015, as macroeconomic data released in favor of the Russian currency. The Services PMI (Purchasing Managers’ Index) released above the threshold 50 level, while consumer inflation on an annual basis rose in the month of September at a slower pace compared to the previous month.

Sentiment was raised further by an increase in crude oil prices. A gain of 1.75% was seen in the price of crude oil November 2015 (or CLX5). The US dollar–Russian ruble pair dropped by 1.90% at the end of the day.

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Inflation growth falls, Services PMI releases above 50

Russian inflation released at 15.7% in September, a decline in the growth trajectory compared to the previous two months of consecutive increases. Housing prices, transportation, and food costs increased at a slower pace, thus contributing to a lesser increase.

On the other hand, the PMI for the Services sector came in at 51.3 in September compared to 49.1 in August. A figure above the threshold level of 50 indicates an expansion in the Services sector, while a figure below 50 indicates contraction.

Impact on the market

The VanEck Vectors Russia ETF (RSX), which provides exposure to companies that are publicly traded and domiciled in Russia, rose by 3.15%. The iShares MSCI Russia Capped ETF (ERUS) rose 3.19% on October 5, 2015.

The positive trend was also evident in Russian ADRs (American Depositary Receipts). Mobile TeleSystems (MBT) rose by 2.67%. Energy-related ADRs were trading positive with Canadian companies such as Canadian Natural Resources (CNQ) and Baytex Energy (BTE), which rose 8.84% and 11.52%, respectively.


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