The Russian rouble extended gains in light trade on Wednesday, climbing to its strongest levels since 2018.

At 0725 GMT, the rouble was 0.4% stronger against the dollar at 61.73, a level last seen in July 2018.

So far this year the rouble has gained 12% versus the dollar, making it the second best-performing currency against the greenback after the Ukrainian hryvnia.

Versus the euro, the rouble gained 0.3% to 68.39, its strongest since early 2018.

The rouble recently enjoyed support from local tax payments that prompt export-focused companies to convert part of their foreign currency revenues to meet local liabilities.

The rouble's gains, however, are expected to be capped ahead of Russia's long New Year holidays, as investors usually tend to minimise exposure to risky assets during that period.

The rouble could also take a hit from higher demand for foreign currency from households ahead of the January holidays, Otkritie brokerage said in a note.

Russian markets enjoyed support from oil prices, which rose this week after Russia said cooperation with OPEC on supply cuts would continue and amid optimism that the United States and China could finalise a trade agreement.

Brent crude oil, a global benchmark for Russia's main export, finished Tuesday's trading 1.24% higher at $67.21 per barrel. The dollar-denominated RTS index was up 0.3% at 1,544.3 points. The rouble-based MOEX Russian index was 0.1% lower at 3,026.9 points, but remained near an all-time high of 3,039.9 reached this month.