Russia’s ruble, Ukraine’s hryvnia climb

14:29, 08 January 2009
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After gas talks resume

Russia’s ruble and Ukraine’s hryvnia rallied, rebounding from their lowest against the euro this year, after the countries resumed talks to resolve the gas dispute that disrupted shipments to Europe, Bloomberg reported.

The ruble rose 4.84 percent to 39.5922 per euro in limited holiday trading at 1:06 p.m. in Moscow, from 41.6079 yesterday. The gains were buoyed by a retreat in the euro against the dollar, following a report of record-low confidence in the European economy.

OAO Gazprom Chief Executive Officer Alexei Miller held talks overnight with NAK Naftogaz Ukrainy’s Oleh Dubina, Naftogaz spokesman Valentyn Zemlyanskyi said in a telephone interview. Both were due in Brussels later today to meet European Union officials as countries from Austria to Poland reported halts and slowdowns in shipments amid freezing weather conditions.

“The bilateral gas dispute has now reached a level that requires high-level international mediation,” economists at Credit Suisse Group AG wrote today in a research note.

The ruble was 3.54 percent stronger versus the central bank’s basket of 55 percent dollars and the rest in euros. Russian markets are closed and the country’s central bank, which manages the ruble to protect exports, won’t set a new official exchange rate until Jan. 11.euros. The ruble lost 0.33 percent against the dollar.

Ukraine’s hryvnia climbed 3.13 percent per euro to 11.0583, from 11.4155 yesterday. It increased 2.42 percent against the dollar.

The euro fell 0.6 percent to 1.3564 against the dollar. An index of executive and consumer sentiment dropped to 67.1 in December from 74.9 in the prior month, the European Commission in Brussels said today. That is the lowest since the index started in 1985.

Bloomberg

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