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Russian rouble stands firm against dollar despite sanctions threats

The Russian rouble reached a record high of more than a week on Monday. This was despite the threat by U.S. president Donald Trump to impose large-scale sanctions against Russia, as Washington tries to push Moscow and Kyiv into negotiating a peace agreement.

The rouble has risen against the dollar in this year's exchange rate, mainly due to expectations that improved relations between Moscow Washington could lead to a resolution of conflict in Ukraine and a possible easing of sanctions.

The rouble reached its highest level since February at 0841 GMT. It was trading up 1.5% to 88.62 dollars on the over-the counter market.

Trump, who had just halted military and intelligence assistance to Ukraine and halted military aid, threatened Moscow on Friday with tariffs and banking restrictions. He also expressed a conciliatory attitude towards President Vladimir Putin's military tactics and has offered an alternative view.

On Monday, Russian troops advanced in the Kursk area.

Denis Popov, analyst at Promsvyazbank, said: "We don't believe that the U.S. authorities' threats of harsher sanctions and negative rhetoric will quickly escalate because negotiations with Russia are still in their initial phase and the Russian authorities are willing and able to negotiate."

The rouble rose 0.5% against the Chinese Yuan, which is the most commonly traded currency in Russia.

Brent crude oil was down by 0.1% to $70.28 per barrel, the global benchmark. (Reporting and Editing by Bernadettebaum)

(source: Reuters)