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Ruble headed for longest winning streak in 1 1/2 years

The ruble gained for an eighth day against the central bank’s target euro-dollar basket, heading for its longest streak of advances since December 2010 as crude rallied on bets the global economic recovery is on track.

The Russian currency added 0.4 percent to 32.1697 per dollar by 10:09 a.m. in Moscow and appreciated 0.3 percent to 39.5197 per euro. Those movements left it up 0.2 percent at 35.5158 against the basket which Bank Rossii targets to smooth currency movements that can curb the comptetiveness of Russian exporters. The ruble rallied for 10 days versus the basket in December 2010.

Brent crude jumped 0.8 percent to $105.96 per barrel today, increasing for a seventh day. Oil and gas contribute about 50 percent of Russia’s state revenue. New U.S. home construction increased in June to the highest level in almost four years, figures from the Commerce Department showed yesterday. Fed Chairman Ben S. Bernanke yesterday outlined options to ease policy further should the flagging economic recovery fails to lower unemployment.

Investors pared bets on the currency weakening, with non- deliverable forwards showing the ruble at 32.6815 per dollar in three months, compared with expectations of 32.7637 per dollar Wednesday.

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