MOSCOW: The Russian rouble weakened against the dollar on Thursday but hovered not far from seven-year highs, supported by capital controls and the prospect of a favourable upcoming tax payment period as the spectre of a possible default loomed large.

President Vladimir Putin signed a decree on Wednesday to establish temporary procedures aimed at fulfilling Russia’s foreign debt obligations as the country teeters on the brink of default.

At 0731 GMT, the rouble was 0.4% weaker against the dollar at 53.36, but remained near its strongest mark since June 2015 of 52.80, hit on Wednesday.

It had gained 0.7% to trade at 56.01 versus the euro , close to a more than seven-year high of 55.01 hit in the previous session.

The rouble, which has become the world’s best-performing currency this year, is driven by Russia’s high proceeds from commodity exports, a sharp drop in imports and a ban on households withdrawing foreign currency savings.