MOSCOW: Russia’s rouble strengthened further against the US dollar to trade on the stronger side of the 100 mark it weakened through in late November on the back of US financial sanctions.

The rouble was up 1.4% at 99.80 against the dollar by 0800 GMT, over-the-counter market data showed.

The rouble strengthened 1.3% to 13.66 against China’s yuan in trading on the Moscow Stock Exchange.

Analysts said the Russian currency was supported by upcoming corporate tax payments, ahead of which companies convert their foreign currency earnings into roubles.

They said dealers might hoard foreign currency ahead of a long New Year break.

“During the last sessions of the year, demand for foreign currency may increase due to the hedging of rouble positions over the New Year holidays, which will put pressure on the Russian currency,” Alor brokerage analysts said.

Rouble slumps to over two-year low

The rouble fell as much as 15% against the dollar in November after US sanctions hit Russia’s third-largest lender, Gazprombank. Much of the lost ground has been regained since then.

One-day rouble/dollar futures, which trade on the Moscow Stock Exchange and are a guide for the over-the-counter exchange rate, were down 0.7% at 102.49.

The Russian central bank set an official exchange rate at 101.61 to the dollar.