MOSCOW: The Russian rouble strengthened on Wednesday, extending gains from the previous day and hitting its highest since late November, as oil prices rose, the dollar weakened on global markets and the end-of-month tax period approached.
At 1425 GMT, the rouble was around 1.5 percent stronger against the dollar at 49.22 and had gained 0.3 percent to 55.82 versus the euro. Brent crude oil was trading around 0.8 percent higher at around $67.4 a barrel. Oil is an important driver for all Russian assets since it is the country's chief export.
"The Russian currency is supported by positive dynamics for oil prices and an active rally in emerging market currencies," analysts at Rosbank said in a note.
"The situation with foreign-currency liquidity remains favourable."
Russia's end-of-month tax period starts on May 15, promising to provide further support to the rouble.
Large exporters convert a portion of their foreign-currency revenues into roubles to pay taxes near the end of each month, underpinning the rouble.
The dollar fell 0.9 percent against a basket of major currencies, dragged lower by weak US retail sales data which suggested the economy was struggling.
Russian share indexes were mixed on Wednesday, reflecting moves in the currency, but the stronger rouble briefly drove the dollar-denominated RTS index to its highest since November.
At 1425 GMT, the RTS was up 1.3 percent to 1,083 points, while its rouble-based peer MICEX was 0.6 percent lower at 1,694 points. Shares in Surgutneftegaz were up 3 percent on the day after it denied a media report by Bloomberg that it could buy a stake in top oil producer Rosneft.
But speculation remained rife about the company's future after Rosneft said it was interested in attracting domestic investors such as Surgut, Russia's third-largest oil producer.
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