MOSCOW (Dow Jones)--The Russian currency could strengthen to 26 rubles against the dollar if the oil price rises, the country's Deputy Economic Development Minister Andrey Klepach said Wednesday.
The ruble strengthened to 29.2 against the dollar Tuesday, well above a low of RUB36 in the beginning of the year.
That marks a major turnaround from January, when the central bank completed a two-month devaluation of the Russian currency after commodity prices plunged and the country slipped into its first recession in a decade.
Asked about the effect of a stronger ruble on the recovery of Russia's commodity-driven economy, Klepach said that a rate of "RUB26 to RUB27 against the dollar could be dangerous."
Oil prices were lower early Wednesday as investors took profits after a recent rally triggered by expected demand sent prices to $80 for the first time in a year, analysts said. New York's main contract, light sweet crude for December delivery, fell 47 cents to $78.65 a barrel.
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