MOSCOW: The Russian rouble strengthened to its highest in more than five weeks versus the dollar on Monday in thin trading with some markets closed for Christmas holidays, amid lingering concerns over a geopolitical standoff between Moscow and the West.
At 0837 GMT, the rouble was 0.5% stronger against the dollar at 73.25, earlier clipping 73.0825, its strongest mark since Nov. 19.
It had gained 0.4% to trade at 82.90 versus the euro , earlier touching a near two-week high.
The rouble has been under increased geopolitical pressure since October as Western nations expressed concerns about Russia's military build-up near its neighbour Ukraine. Moscow said it can move its army within its territory as it deems necessary.
President Vladimir Putin last week said Russia had received a generally positive initial response to security proposals it handed to the United States this month designed to defuse the current situation over Ukraine and that he was hopeful about the prospect for negotiations next year.
Demand for foreign currency will increase towards the end of the year as investors hedge risks on rouble assets, Alor Broker said in a note, implying that the rouble could start weakening as early as Monday.
Promsvyazbank analysts said the background for rouble was neutral, noting that trading activity would likely be low due to continued Christmas holidays in Europe. Trading activity is likely to wane further ahead of Russia's long New Year holidays.
Brent crude oil, a global benchmark for Russia's main export, was down 0.1% at $76.07 a barrel.
Russian stock indexes were up.
The dollar-denominated RTS index was up 1.2% at 1,602.6 points. The rouble-based MOEX Russian index was 0.6% higher at 3,726.1 points.
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