Ruble Strengthens After Central Bank Acts
Russian Central Bank Moves to Shore Up Banking System
By Andrey Ostroukh, Alexander Kolyandr and Chiara Albanese
Updated Dec. 17, 2014 12:36 p.m. ET
MOSCOW—Russia’s battered ruble recovered some of its recent losses against the dollar on Wednesday as the market welcomed measures by the Bank of Russia to shore up the country’s banks, and the Finance Ministry said it would start selling its excess foreign currency holdings.
In a volatile day of trading, the currency gained more than 10% on the Moscow Exchange after the central bank announced a raft of measures to ease banking regulations and aimed at convincing Russians to keep their money in the national currency. The ruble was trading around 60 to the dollar by late Wednesday evening. The dollar-denominated RTS Index also spiked 17.6%, its largest gain in five years.
The strengthening of the ruble was likely helped by a recovery in oil prices, with Brent crude, the global benchmark edging back above the psychologically significant $60-a-barrel level to reach $62.44 a barrel in late afternoon European trading on Wednesday.
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http://www.wsj.com/articles/oil-prices-skid-on-russia-output-plan-1418784516
U.S. Oil Prices Rise Off Multiyear Lows
Rebound Attributed to Traders Betting on Lower Prices to Close Out Positions
By Nicole Friedman
Updated Dec. 17, 2014 12:24 p.m. ET
NEW YORK—Oil prices rallied Wednesday as traders closed out positions following a dramatic plunge in prices in recent months.
Light, sweet crude for January delivery recently rose $2.12, or 3.8%, to $58.05 a barrel on the New York Mercantile Exchange, after trading as low as $54.21 a barrel in early trading.
Brent, the global benchmark, recently rose $2.43, or 4.1%, to $62.44 a barrel on ICE Futures Europe.
Market watchers attributed the rebound to traders who had bet on lower prices closing out positions. Oil prices have plunged nearly 50% since June to the lowest level in more than five years.
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