MOSCOW: The Russian rouble climbed on Monday to its strongest levels since August last year, posting a rare intraday gain of more than 1 percent versus the dollar reflecting month-end tax payments and higher oil prices.

The rouble firmed to 64.14 versus the dollar and to 72.80 versus the euro, levels it was last at on Aug. 8, when the rouble was falling amid a wider sell-off on the Russian market driven by threats of more U.S. sanctions against Moscow.

The currency's advance gained pace in thin trade after the dollar slipped below a strong technical resistance level of 65.

"The rouble has generally been outperforming EM (emerging market) currencies in recent weeks, showing one of the best results during risk-on periods, while depreciating only slightly during risk-off ones," analysts at Sberbank CIB said in a note.

"It is currently enjoying strong macro (economic) advantages, while it seems that the sanctions risk is being almost disregarded," the analysts said, adding that the geopolitical risk in the rouble had fallen to its lowest level since August.

The rouble also enjoys one of the most attractive yields in the emerging market universe and is widely expect to retain this appeal as the central bank is seen holding its key interest rate at 7.75 percent this week.

"We think that the upcoming week will be positive for the rouble," Rosbank said in a note. "The expected first signals from the central bank towards a softening of its policy at its meeting on Friday will support demand for Russian assets."

The rouble got a boost this month from strong foreign demand for Russian OFZ treasury bonds. Last week, more than half of the demand for the bonds had come from investors abroad, while the volume of bonds sold by the finance ministry reached an all-time high.

The rouble pared some gains by 1347 GMT and was 0.7 percent higher on the day at 64.35 versus the dollar. Against the euro, the rouble was 0.5 percent stronger at 73.00.

The rouble is also seeing support from month-end tax payments that usually prompt export-focused companies to convert their foreign currency to meet local liabilities.

Russian stock indexes traded higher, supported by oil prices that stood near 2019 highs amid supply cuts by OPEC and U.S. sanctions against Iran and Venezuela.

The dollar-denominated RTS index was up 1.7 percent at 1,216.45 points. The rouble-based MOEX Russian index was up 0.3 percent at 2,484.3 points.