MOSCOW: The Russian rouble firmed on Thursday, recouping sharp losses of the previous session when it fell from a 16-month high versus the dollar, while stocks indexes extended their slide.

At 0754 GMT, the rouble was 0.2% stronger against the dollar at 70.49. It had hit its strongest level since June 2020 of 69.21 on Tuesday.

Against the euro, the rouble was 0.1% firmer at 81.85 after weakening from its 2021 peak of 80.42 touched earlier this week.

The rouble underperformed its peers as Russia's tax period ended, VTB Capital said. Taxes usually prompt export-focused companies to convert their FX revenues into rouble to meet local liabilities.

The spread of COVID-19 in Russia is in focus as the number of daily cases exceeded 40,000 for the first time and the death toll was at a record high.

The Russian capital brought in its strictest lockdown measures since June 2020 on Thursday as hospitals confronted a rising wave of coronavirus cases.