MOSCOW: The Russian rouble firmed versus the dollar to its strongest since mid-September at Tuesday's open, following its emerging peers and receiving support from local tax payments, while stock markets were mixed ahead of the European summit.
By 0806 GMT, the rouble had gained 0.5 percent to 30.48 , the level last seen on Sept. 16.
Versus the euro, the rouble firmed 0.15 percent to 42.45 percent and strengthened 0.3 percent to 35.87 against the euro-dollar basket , the central bank's main gauge of the currency market.
"There was a strong rally on all emerging markets after US market open overnight, and in Russia the dollar is being supported only by local demand for foreign currency," said Pavel Demeshchik, a dealer at ING bank in Moscow.
"The rouble is trading in line with other emerging market currencies, such as Australian and Canadian dollars, S.African rand and Polish zloty," he said.
Risky assets gained ground recently on hopes that European leaders will come up with measures to contain the region's debt crisis at a summit on Wednesday.
The money market remained strained in terms of liquidity, with overnight interbank lending rates hovering close to 5.5 percent, their highest since January .
This, together with tax payments, prompted companies to convert dollars and euros to meet local needs, while oil prices remained at around $111 per barrel , above the level of $108 factored into 2011 budget.
"Tax and oil prices are an additional punch on the dollar versus the rouble, an impetus for the rouble. But the main factor is still mood on global markets," said Demeshchik.
According to Rosbank estimates, Tuesday's payments of mineral extraction tax will total around 175 billion roubles ($5.7 billion) and income tax, due by Friday, could total some 225 billion roubles.
However, some market players say that risky assets could again come under pressure if the outcome of the European summit does not meet expectations.
Analysts at VTB Capital said in a note that the rouble could suffer from the "classic 'buy the rumour - sell the fact' behavior" after the summit, adding that current levels are "interesting for opening long dollar positions."
Stock markets reflected investors' doubts about euro zone steps to contain the crisis, with the dollar-based RTS index adding 0.3 percent on the day and the rouble-traded MICEX index down 0.55 percent.
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