MOSCOW: The rouble strengthened on Thursday, hitting a near two-week high versus the dollar, on easing geopolitical tensions after high level diplomatic talks between Russia and the United States, with markets watching Russia's Eurobond placement.

Demand for Russia's double-tranche sovereign Eurobond issue reached nearly 2 billion euros ($2.44 billion) on Thursday, as markets welcomed talks between Moscow and Washington's top diplomats and the easing of some U.S. sanctions.

At 1628 GMT, the rouble was 0.4pc stronger against the dollar at 73.52 after firming to 73.4450, its strongest showing since May 7 and closer to levels that were last seen in mid-March, before the latest sell-off in the Russian currency began.

Top diplomats from the Biden administration and Russia, in their first in-person meeting on Wednesday, stressed that the former Cold War foes have serious differences in how they view world affairs but said the two sides can still find ways to work together.

Inflation concerns and rising COVID-19 cases in Asia have dented global risk appetite in recent days, but the Russian market received a boost on Wednesday after the United States waived sanctions on the company behind the Nord Stream 2 gas pipeline to Germany.

The rouble had gained 0.1pc to trade at 89.85 versus the euro.

Brent crude oil, a global benchmark for Russia's main export, was down 0.8pc at $66.11 a barrel, falling for a third straight day, which did not stop Russian stocks indexes from advancing.

The dollar-denominated RTS index was up 0.4pc at 1,558.7 points.

The rouble-based MOEX Russian index ended the day 0.04pc higher at 3,636.2 points.