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. Last Updated: 07/27/2016

Central Bank Seen Propping Up Ruble

The ruble rose against its dollar-euro basket Tuesday on speculation that the Central Bank sold foreign reserves to prop up the currency.

Investors pulled out of emerging-market assets, with the MICEX Index plunging by as much as 19 percent, a record, as financial turmoil intensified after the collapse of Lehman Brothers Holdings and a credit-rating cut for American International Group, the United States' largest insurer by assets. The price of oil fell below $91 per barrel for the first time since February.

The Central Bank selling is "the obvious reason" for the ruble's stability, said Agata Urbanska, an emerging-markets economist at ING Group. "They have big enough reserves."

The currency was at 30.37 versus the basket at 7:26 p.m. in Moscow, from 30.39 on Monday. The ruble slipped to 25.60 per dollar, from 25.51, and gained 0.4 percent to 36.21 against the euro.

The Central Bank keeps the currency within a trading band against the basket to limit the impact of its fluctuations on the competitiveness of Russian exports. The bank does not comment on its daily activities in the foreign currency market.

Urbanska said the Central Bank would not let the ruble weaken below 30.40 against the basket.