MOSCOW: The Russian rouble strengthened against the US dollar and other major currencies on Tuesday as speculative pressure caused by new US sanctions against Russia’s financial sector subsided.

By 0830 GMT, the rouble was up 0.5% at 106.50 against the dollar and up 0.1% against the euro, according to over-the-counter data from banks.

The rouble was up 0.15% at 14.58 against China’s yuan in trade on the Moscow Stock Exchange.

“The volatility of the rouble has decreased, market participants are recovering from the large-scale devaluation of the national currency,” BCS brokerage analysts said.

The rouble lost about 15% against the dollar in what many analysts described as panic buying of foreign currency following the US sanctions on Russian banks, including Gazprombank, which handles payments for Russia’s energy trade with Europe.

In response to the rouble’s fall, the central bank stopped foreign currency purchases last week while officials, including President Vladimir Putin, sought to calm markets, saying there were no fundamental reasons for the rouble to weaken.

Trade in dollars and euros moved to the over-the-counter market after Western sanctions in June targeted the Moscow Stock Exchange.

Russian rouble flat against dollar

The central bank sets an official exchange rate for both currencies based on data directly supplied by banks. One-day rouble/dollar futures, which trade on the Moscow Stock Exchange and are a guide for the over-the-counter exchange rate, were flat at 106.65.

The Russian central bank set an official exchange rate at 107.18 to the dollar.