The Russian rouble firmed more than 6 percent against the euro on Monday to a near seven-year high, boosted by capital controls and strong oil prices.
As of press time, the rouble had gained 6.3 percent to trade at 58.75 versus the euro, its strongest point since early June 2015.
It was 4.6 percent stronger against the dollar at 57.47, not far from 57.0750, its strongest mark since late March 2018, hit on Friday.
The rouble has firmed about 30 percent against the dollar this year despite a full-scale economic crisis in Russia.
The recent gain makes it one of the strongest currencies this year- albeit artificially supported by controls imposed in late February to shield Russia’s financial sector following its military operation in Ukraine which prompted unprecedented Western sanctions.
The rouble is being driven by export-focused companies that are obliged to convert their foreign currency revenue after the sanctions froze nearly half of Russia’s gold and forex reserves.
While the central bank and government leave restrictions in place, the rouble could continue to strengthen further in the medium term, the exchange rate may start to stabilize nearer to the 60-65 level as imports recover and restrictions are potentially lifted.
Russia’s demands that foreign buyers pay for gas in roubles have also contributed to the rouble’s recent rally.