Rouble hits one-month high against dollar

The Russian rouble strengthened to a more than one-month high in Moscow trade on Tuesday, firming past 88 to the dollar, while stocks regained some ground in the fourth session since trading resumed after a near month-long suspension.

The Russian market is gradually reopening after a suspension caused by sweeping Western sanctions that followed the beginning of what Russia calls "a special operation" in Ukraine on February 24.

By 0914 GMT, the rouble was up 2 per cent against the dollar at 88.00, having earlier touched 87.40, its strongest since February 28. It lost 0.3 per cent to trade at 96.89 versus the euro after briefly clipping a one-month high.

In offshore trade, the rouble was marginally weaker, hovering at 89.75 to the dollar on the EBS electronic platform.

Two powerful drivers - Russia switching to roubles for gas export payments and exporting firms being mandated to convert 80 per cent of their foreign currency earnings into roubles - are supporting the Russian currency, said Iskander Lutsko, chief investment strategist at ITI Capital.

"The market now really depends on progress in negotiations between Russia and Ukraine," Lutsko said of the Russian stock market, as the two sides met for face-to-face talks in Turkey.

Russian stocks are trading in curtailed sessions and with various restrictions, including a ban on short-selling. Non-residents are barred from selling stocks and OFZ rouble bonds until April 1. Trading volumes are far lower than normal.