MOSCOW: The Russian rouble hit a new 2016 high against the dollar on Thursday, boosted by the dovish position of the U.S. Federal Reserve and strengthening oil prices.
At 0750 GMT, the rouble was 0.8 percent stronger against the dollar at 68.57 and had gained 0.8 percent to 77.1 versus the euro.
For the first time in 2016, the Russian currency strengthened below 69 roubles per dollar, briefly touching 68.4, its strongest level since Dec. 7.
Analysts said the rouble was gaining strength because appetite for emerging markets had been boosted by the U.S. Federal Reserve's statements on Wednesday.
The Fed left interest rates on hold as expected, but scaled down its forecasts for future rate rises, a move seen by markets as a dovish signal that has weakened the dollar and improved global risk appetite.
The rouble is also being supported by a strengthening oil price. Brent crude oil, a global benchmark for Russia's main export, was up 1.5 percent at $40.9 a barrel.
Oil is again near 2016 highs after OPEC producers and Russia confirmed they would meet in April to discuss an output freeze even if other major producers did not join in.
"We maintain a positive view on the immediate prospects for the rouble," ING economist Dmitry Polevoy said in a note.
"Stable oil, global optimism, the expected holding of (Russian) central bank interest rates and forthcoming tax payments - all this preserves chances for a further strengthening of the rouble," he wrote.
Russia's central bank is expected to hold its key lending rate at 11 percent when it meets to discuss monetary policy on Friday.
Russian share indexes were also up on Thursday.
The dollar-denominated RTS index was up 4.3 percent to 872 points, while the rouble-based MICEX was 1.5 percent higher at 1,899 points.
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