Rouble steadies near 61 vs dollar

The Russian rouble steadied against the dollar on Tuesday as market players gauged the impact of the latest round of Western sanctions against Moscow and investor focus turned to an expected central bank rate cut later in the week.

By 1055 GMT, the rouble was unchanged against the dollar at 61.01, supported by capital controls. It has stabilised in the relatively narrow range of 60.0-62.5 in the past few days after rapid swings in May.

Promsvyazbank analysts said the currency would consolidate in the 60-62 range to the US dollar on Tuesday. The rouble gained 0.6 per cent to trade at 64.71 versus the euro.

On the Moscow Exchange, the rouble is driven by capital controls that Russia imposed to protect its financial system soon after sending tens of thousands of troops into Ukraine on February 24.

But the Russian currency remains much weaker at banks. VTB, Russia's second-largest lender, offered to sell cash dollars and euros for 82.00 and 87.00 roubles respectively.