MOSCOW: Russian assets rose on Wednesday, helped by higher oil prices and the rouble by a weakening American dollar, with analysts warning the firming in the Russian currency might be short-lived.
At 0715 GMT, the rouble was 0.5 percent stronger against the dollar at 67.72 and had gained 0.4 percent to trade at 76.60 versus the euro.
Brent crude oil, a global benchmark for Russia's main export, was up 1.2 percent at $39.61 a barrel, buoyed by a less than expected build in crude oil stockpiles last week.
"We believe that the rouble is trading too high, considering current oil prices," Alexander Grichenkov, analyst at MFX Broker, said in a note.
"It is probable that the market will reconsider its attitude towards the overbought Russian currency and send the dollar to trade at around 69 roubles and the euro to the level of 78 roubles."
The weakening in the American dollar on dovish comments on possible interest rate rises by US Fed Chair Janet Yellen on Tuesday also helped the Russian currency.
Russian share indexes were also on the rise, with the dollar-denominated RTS index was up 2.3 percent to 862.9 points and the rouble-based peer MICEX 0.6percent higher at 1,855 points.
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