MOSCOW: The rouble weakened on Thursday after paring recent heavy losses for five days in a row, while stock indexes dipped, with investors keeping an eye on tensions between Moscow and the West that led to a major sell-off in January.

Russian markets remain highly volatile and vulnerable to any headlines related to political developments.

The political showdown between Russian President Vladimir Putin and the West over Ukraine remains the main focus ahead of Friday’s opening ceremony of the Winter Olympics in Beijing which the Russian leader will attend in a show of unity with Chinese counterpart Xi Jinping.

At 0955 GMT, the rouble eased 0.7% to 76.58 against the dollar, having on Wednesday hit 75.68, its strongest since Jan. 17.

The rouble has moved away from a near 15-month low of 80.4125 hit last week when it was battered by concerns that Russia plans to invade neighbouring Ukraine, something Moscow has repeatedly denied.

“Russia’s fundamental case screams buy, but investors will likely be waiting for the geopolitical clouds to clear,” BCS Global Markets said in a note.

Versus the euro, the rouble weakened 0.5% to 86.44 .

Adding to potential downside pressure on the rouble, the finance ministry said on Thursday it will channel a record $8.3 billion worth of gold and foreign currency to state reserves in the month ahead.

But any immediate impact on the rouble is expected to be minimal as Russia last month suspended daily state FX buying on the market to ease pressure on its falling currency.

The rouble should receive support from a central bank rate increase that the market has factored in for Feb. 11 after inflation, the bank’s main area of responsibility and which it targets at 4%, climbed to 8.82%, its highest since early 2016.