Russian rouble rises to levels not seen since March 2018

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Russian rouble rises to levels not seen since March 2018

Russian rouble was boosted to levels not seen since March 2018 against the dollar, boosted by companies selling foreign currency to pay taxes and shrugging off a slight easing of capital controls.

The rouble has risen by 30% against the dollar this year despite a full-scale economic crisis in Russia, making it the world's rouble. Capital controls imposed in late February to protect Russia's financial sector after Moscow sent tens of thousands of troops into Ukraine prompted unprecedented Western sanctions.

The rouble was 0.7% stronger against the dollar at 57.44 at the time of 0725 GMT, after it fell to 56.61 on the Moscow Exchange for the first time in more than four years.

The rouble moved near seven-year highs against the euro, falling by 0.9% to 59.57.

The currency's strength has raised concerns about the negative impact on Russia's budget revenue from exports. On Monday, Russia cut the proportion of foreign currency revenue that exporters must convert into roubles to 50% from 80%.

The rouble could firm to 55 against the dollar in the near term despite the slight relaxation in capital controls, said Dmitry Polevoy, head of investment at LockoInvest.

Polevoy said that current levels could be used to open long positions in foreign currencies by mid- and long-term investors.

In June, the rouble could return to levels of 60 -- 65 against the dollar, according to the Sinara Investment Bank.

The rouble was weaker at banks. Russia's largest lender, Sberbank, offered to sell cash dollars and euros for 58.20 and 60.38 roubles.

The dollar-denominated RTS index was down 0.7% to 1,245. 0 points. The Russian rouble-based MOEX index was 0.1% lower at 2,276. 7 points.