MOSCOW: The Russian rouble firmed to 73 against the dollar on Thursday for the first time since August and the MOEX stock index hit an all-time peak, boosted by rallying oil prices amid optimism over Covid-19 vaccines.

The rouble has been recovering since the US presidential election in early November, paring losses inflicted by fears Moscow would see new Western sanctions related to the US vote, the suspected poisoning of Kremlin critic Alexei Navalny and a political crisis in neighbouring Belarus.

By 1638 GMT, the rouble was 1.1% stronger against the dollar at 73.08, having briefly touched 72.96, its strongest since Aug. 18.

Geopolitical woes limited the rouble gains as the United States on Thursday blacklisted alleged human rights abusers in Russia, while the Netherlands ordered the expulsion of two Russian diplomats accused of spying.

Still, market concerns about new possible economic sanctions have eased recently.

"Lower geopolitical risks despite some targeted sanctions and a recovery in foreign investors' interest in emerging markets support the Russian currency," said Vladimir Evstifeyev, an analyst at Zenit Bank.

The rouble gained 0.8% to 88.50 versus the euro, a level last seen in mid-September, after the European Central Bank delivered a fresh stimulus package that appeared to be broadly in line with market expectations.

The rouble, which was still far weaker than in early 2020 before the Covid-19 pandemic, advanced as Brent crude, a global benchmark for Russia's main export, surged above $50 a barrel for the first time since early March.

The dollar-denominated RTS index ended the session 2.4% higher at 1,404.68 points, a level last seen in late February.