MOSCOW: The Russian rouble clipped a one-week low on Monday before firming past 77 against the dollar as investors digested the weekend's developments over Ukraine, with renewed hopes that diplomatic efforts may yield results.

US President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit over Ukraine, the French leader said on Monday, offering a possible path out of one of the most dangerous European crises in decades.

At 0604 GMT, the rouble was 0.5% stronger against the dollar at 76.95, having touched 77.6950 in early trade, its weakest since Jan. 14. It had gained 0.1% to trade at 87.45 versus the euro, also recovering from a one-week low.

Russian rouble resumes recovery ahead of Putin-Xi meeting

Russia has repeatedly rejected Western assertions that it may be planning to invade neighbouring Ukraine, but its assets have been hammered by fears of a military conflict that would almost certainly trigger sweeping new Western sanctions against Moscow.

Biden's administration has prepared an initial package of sanctions against Russia that includes barring US financial institutions from processing transactions for major Russian banks, three people familiar with the matter told Reuters.

Brent crude oil, a global benchmark for Russia's main export, was down 0.6% at $92.99 a barrel.