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. Last Updated: 07/27/2016

Central Bank Guides Ruble Higher

The Central Bank guided the ruble higher by 0.5 percent on Tuesday against a dual currency basket in a revaluation apparently aimed at fighting inflation.

The ruble stood at 29.78 against the basket, used by the Central Bank to guide its currency interventions and made up of $0.55 and 0.45 euros, compared with 29.91 to 29.93 since February.

"This is obviously the Central Bank's move," said Alexei Zaitsev, currency dealer at Moscow International Bank.

Central Bank deputy head Konstantin Korishchenko said the bank does not comment on currency moves.

"If the market links such actions to inflation, that's what the market thinks," Korishchenko said.

He said the Central Bank had varying estimates for the contribution of the nominal appreciation of the ruble to cutting inflation. The move came after the Central Bank released its estimate that inflation would be 0.6 percent month on month in June after consumer prices rose by 4.7 percent in the first five months of the year.

Inflation in the year to June 18 was 5.1 percent, Central Bank deputy chairman Alexei Ulyukayev said Tuesday, Interfax reported.

Consumer prices increased 0.4 percent in the first 18 days of June, Ulyukayev said.