Ruble Firms Up for 2nd Day in Row

The ruble rose for a second day Wednesday against the Central Bank's dollar-euro basket after Russia ordered a halt to military operations in Georgia.

"We will see a calming down" and the ruble will move toward the 29.3 level against the basket as tensions decrease, said Shahin Vallee, an emerging markets currency strategist at BNP Paribas in London.

The ruble climbed 0.1 percent to 29.5841 versus the basket as of 7:55 p.m. in Moscow, from 29.6148 Tuesday. Against the dollar, the ruble was little changed, while it gained 0.2 percent versus the euro.

The Central Bank protects exporters by confining the ruble to a band versus the basket, which is calculated by multiplying the ruble rate to the dollar by 0.55 and the rate to the euro by 0.45, then adding the two together.

The ruble jumped by the most in 7 1/2 years against the dollar Tuesday after President Dmitry Medvedev said he was halting the military action in Georgia.