MOSCOW: The Russian rouble stabilised on Tuesday after nearing a two-week low against the dollar the previous day amid concerns about a new wave of tension between Russia and the West as well as the risk of more sanctions against Moscow.
At 0744 GMT, the rouble was little changed on the day at 76.37 against the dollar after falling to 76.74 on Monday, its weakest since March 24.
Versus the euro, the rouble was steady at 90.23 .
The geopolitical premium paid for the rouble remains significant. In early 2020, when oil prices, one of the main drivers of the rouble's exchange rate, were near current levels of around $63 a barrel, the rouble stood at around 61 to the dollar and 68 against the euro.
Russian assets have been under pressure from the sanction threat that intensified in the second half of March when US President Joe Biden said Russian President Vladimir Putin will "pay a price" for meddling in US elections and cyber-hacking, allegations that Moscow denies.
Geopolitical concerns rose last week after NATO voiced concern over what it said was a big Russian military build-up near eastern Ukraine and as Russia said a serious escalation in the conflict in Ukraine's Donbass region could "destroy" Ukraine.
The Kremlin said on Monday the Russian military movements near the border posed no threat to Ukraine or anyone else and that Moscow moved troops around its country as it saw fit.
"We think the rouble will likely remain near current levels until some sort of clarity emerges on the geopolitical front," Sberbank CIB said in a note.
Brent crude oil, a global benchmark for Russia's main export, was up 1.4% at $63.03 a barrel as investors looked for bargains following the previous day's plunge on rising output from OPEC+, while strong economic data from the United States and China brightened recovery prospects.
But this failed to help Russian stock indexes post gains.
The dollar-denominated RTS index was down 0.7% to 1,447.7 points. The rouble-based MOEX Russian index was 0.4% lower at 3,509.9 points, heading away from an all-time high of 3,602.18 hit last month.