MOSCOW: The rouble moved sharply higher on Monday, extending last week's strong gains on bullish investor sentiment globally and rising oil prices, with tax payments by Russian firms expected to boost the currency this week.
At 0850 GMT, the rouble was around 2 percent stronger against the dollar at 44.81 and gained 2.1 percent to trade at 55.46 versus the euro.
The rouble tracked Asian markets higher on the prospect of further policy stimulus in China and Europe, which also helped lift prices for oil, one of Russia's main exports and sources of budget revenue.
Investors in Russian assets were also positioning before this week's OPEC meeting, at which the oil producing group is expected to discuss whether to cut output because of a sharp decline in oil prices in recent months.
"At minimum, in order for the rouble not to decline, a commitment by OPEC to stop oversupply and hold to its official 30 million barrels per day production target is probably required," Tom Levinson, a forex analyst at Sberbank CIB, said in a note.
Traders said market moves were distorted by relatively thin trading volumes and that demand for foreign currency had declined since October, when the central bank sold some $30 billion in currency interventions before floating the rouble on Nov. 10.
Russian exporters are expected to support the rouble this week, as two large taxes, the mineral extraction tax and profit tax, fall due, requiring them to convert their foreign currency earnings into roubles to meet the obligations.
The rouble is down more than 25 percent against the dollar this year, hurt by the slump in oil prices and Western sanctions over the Ukraine crisis that have restricted Russian firms' access to international capital.
Russian shares were mixed on Monday, with the tone for two major indexes determined by the strong move in the rouble.
The dollar-denominated RTS index was up 1.7 percent to 1,076 points, while its rouble-based peer MICEX traded 0.7 percent lower at 1,528 points.
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