MOSCOW: The Russian rouble slid to a two-week low past 90 to the dollar on Friday as a favourable month-end tax period passed, on course for a weekly decline after seven weeks of gains following a rally spurred by capital controls, high oil prices and interest rates.

By 1045 GMT, the rouble was 0.5% weaker against the dollar at 89.93, earlier hitting 90.1275, its weakest point since Nov. 17. It had lost 0.6% to trade at 97.94 versus the euro and shed 0.6% against the yuan to 12.56.

The Russian currency has now lost the support of a month-end tax period that usually sees exporters convert foreign exchange revenues to pay local liabilities, and the rouble’s rally is showing signs of petering out after seven successive weeks of gains.

The rouble has rebounded from more than 100 to the dollar, thanks to reduced capital outflows since President Vladimir Putin introduced the forced conversion of some foreign currency revenue for exporters in October.

“The rouble is predominantly cheaper in December as the amount of money in the economy increases towards the end of the year,” Alor Broker’s Alexei Antonov said in a note. High oil prices and the prospect of more monetary tightening are supporting the rouble, too.

The Bank of Russia, which meets on Dec. 15, raised rates to 15% in late October and has signalled that another increase may be needed.

Russian rouble steadies, buoyed by capital controls, high oil prices

Brent crude oil, a global benchmark for Russia’s main export, was up 0.1% at $80.94 a barrel. Russian stock indexes were lower.

The dollar-denominated RTS index was down 0.8% to 1,106.5 points.

The rouble-based MOEX Russian index was 0.2% lower at 3,158.9 points.

Lender Sovcombank said on Friday it expects a market capitalisation of up to about $2.5 billion after its initial public offering (IPO) on Moscow Exchange later this month, the latest in a small flurry of Russian market debuts.