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. Last Updated: 07/27/2016

Ruble Tops 29 to the Dollar for First Time in 4 Months

The ruble rose above 29 to the dollar on Friday for the first time since early June, after the Central Bank allowed the currency to have its biggest one-day gain in nine months.

Authorities have been keeping the price of exports competitive by putting a lid on the ruble, which threatens to rise sharply on the back of record high prices for Russia's key export, oil.

"The Central Bank did not place its [dollar] bid, and so, as you'd expect, the dollar fell," said Zenit bank dealer Alexander Karpov.

Last week the Central Bank allowed the ruble to strengthen 10 kopeks against the dollar in what was seen as a bid to dampen inflation. Since then it had been seen supporting the dollar at 29.1150 rubles.

The official weighted average for rubles for tomorrow settlement rose to 28.9989 to the dollar from 29.1154. The rate is set at a joint trading session of eight exchanges across the country. The Central Bank declined to comment. It typically declines to comment on its intervention policy but has warned speculators not to bet on any surge in the currency.

"Yesterday the market was full of rumors this would happen. But I wouldn't say the market was ready for it," said Sergei Shchepilov, a Raiffeisenbank dealer.

(Reuters, Bloomberg)