MOSCOW: The rouble gained ground against both the dollar and euro on Tuesday, as higher oil prices and weak demand for foreign currency bolstered the Russian currency after a four-day holiday weekend when Russian markets were closed.
At 1030 GMT, the rouble was around 0.4 percent stronger against the dollar at 51.50 and rose 1.2 percent to trade at 57.22 versus the euro.
The discrepancy in the rouble's position against the two currencies was largely due to the dollar strengthening against the euro-zone currency since Russian markets closed on Thursday.
Analysts said trading was likely to be volatile and volumes low as many market participants would not return to work until after another holiday weekend on May 9 to 11 to mark the anniversary of the end of World War Two in Europe.
The rouble had opened as much as 1 percent weaker against the dollar.
Pyotr Neimyshev, a forex trader at Otkritie bank, said weak bidding for dollars and euros was helping the rouble.
"You get the feeling that no one needs foreign currency, everyone bought it in advance and with plenty to spare, therefore there's practically no foreign currency bid," he said.
Brent crude oil, an important driver for Russian assets, was trading at around $66.9 a barrel, up 0.7 percent on the day and just below a 2015 high.
Dmitry Polevoy, chief Russia economist at ING Bank, said in a note he expected increased volatility in the coming week because of fewer corporate players who give trading its "depth and liquidity".
Russian firms are typically most active on the forex market towards the end of each month, when large exporters convert foreign currency to meet tax payments.
The tax period ended last week. Russian shares also moved higher on Tuesday.
The dollar-denominated RTS index was up 2.2 percent to 1,051 points, while its rouble-based peer MICEX traded 1.9 percent higher at 1,720 points.
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