Russian ruble strengthens against euro, dollar as oil advances

The Russian ruble strengthened against the U.S. dollar and the euro in early MICEX trade on Monday amid an increase in international oil prices spurred by positive political news from the eurozone. The ruble opened 19 kopecks higher against the dollar to 30.25 rubles and 13 kopecks against the euro to 41.61 rubles. The value of the bi-currency basket, comprising $0.55 and 0.45 euros, fell 17 kopecks to 35.36 rubles compared to Friday's close, the MICEX data showed. Global prices for Brent crude edged up 0.3 percent to $114.5 per barrel on Monday. Oil prices started rising after Italy's President Giorgio Napolitano on Sunday appointed former European Commissioner and renowned economist Mario Monti to head an emergency government charged with implementing tight austerity measures to stabilize finances in the eurozone's third largest economy burdened with a state debt of some 1.9 trillion euros ($2.6 trillion). The yield on Italy’s benchmark 10-year sovereign bonds decreased below the critical 7 percent level that triggered bailout requests from Portugal, Ireland and Greece. Last week the yield jumped over 7 percent and depressed the market. Global investors also cheered up as the Michigan Consumer Sentiment Index in the United States increased sharply in November to an estimated 64.2 points from 60.9 points, above the forecast. Russian stocks also grew amid the positive external background. Russia's dollar-denominated RTS stock index rose 1.89 percent to 1,560.24, while the ruble-denominated MICEX edged up 1.70 percent to 1,510.27 in early trade. Analysts expect the country's stock indices to grow further as Russia has finally agreed its accession to the World Trade Organization. European stocks increased on Monday by around 2.6 percent. American and Asian stocks showed positive dynamics.