MOSCOW: The rouble strengthened on Monday, reaching a four-month high against the dollar, boosted by improving sentiment globally and surging energy prices that also lifted Russian stocks to record highs.

At 0740 GMT, the rouble was 0.4% stronger against the dollar at 71.62, its strongest point since June 11.

It had gained 0.3% to trade at 82.93 versus the euro.

The rouble should test the 71.5 mark versus the dollar in today's trading, Promsvyazbank analysts said in a note.

Alongside rising oil prices and favourable conditions on financial markets, the prospect of a possible 50 basis point interest rate hike on Oct. 22 by the central bank, as it seeks to rein in high inflation, should also support the rouble, they added.

Higher rates are positive for the rouble as they increase the appeal of rouble-denominated assets in carry trade operations, where players borrow cheaply in dollars or euros and convert the foreign currency to buy into high-yielding assets.

Brent crude oil, a global benchmark for Russia's main export, was up 1.6% at $83.72 a barrel, pushing Russian stock indexes higher.

The dollar-denominated RTS index was up 0.7% to 1,873.3 points, its highest since August 2011. The rouble-based MOEX Russian index was 0.5% higher at 4,256.2 points, earlier hitting an all-time high of 4,272.82 points.

Shares in forestry group Segezha were up 5.2%, after it agreed to buy the Inter Forest company from Bonum Capital investment company for $515 million in a deal that would increase Bonum's stake in Segezha.