MOSCOW: The rouble edged higher in early trade on Thursday, reversing some of the previous session's losses, as the market expected the Russian central bank to raise rates at its policy meeting.
At 0725 GMT, the rouble was around 0.2 percent stronger against the dollar at 54.73 and gained less than 0.1 percent to trade at 68.22 versus the euro.
The Russian currency has slumped almost 40 percent since June on falling oil prices, an economic slowdown and Western sanctions over the Ukraine crisis that have restricted Russian firms' access to international capital.
"The pressure to deliver bold policy action has increased significantly over the last two weeks, following the brisk decline in oil prices and consequent pressure on the currency," Maxim Korovin, a forex analyst at VTB Capital bank, said in a note.
A Reuters poll showed that analysts saw the bank increasing its main lending rate by one point to 10.5 percent on Thursday to try to support the rouble.
Korovin said the bank could also introduce additional non-conventional measures to support the currency, including by increasing dollar liquidity.
Benchmark Brent crude oil ticked higher on Thursday but remained below $65 per barrel, not far from a five-year low hit in the previous session.
Oil and gas account for two-thirds of Russia's exports, so oil price swings have an important bearing on the country's balance of payments and the currency.
The dollar-denominated RTS index was up 0.2 percent to 856 points early on Wednesday, while its rouble-based peer MICEX traded 0.1 percent higher at 1,489 points.
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