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The Russian rouble is rising against the dollar following a fall due to Trump's threats

The Russian rouble gained ground against the dollar Thursday after U.S. president Donald Trump threatened to impose additional sanctions if Russia did not make progress on a peaceful solution in Ukraine.

The rouble increased by 0.6% at 1115 GMT, to 80.55 per dollar. It is now close to the 80-mark it crossed the other way on July 28.

Analysts from Bank of Saint Petersburg said that the currency market had already priced sanctions into its price.

The rouble fell 4.3% between July 24 and July 30, to 81.9 dollars, in response to Trump's threats as well as the central bank's rate reduction last week.

The traders, who spoke under condition of anonymity said that the higher oil prices prompted currency sales by Russian companies exporting goods, which helped to meet short-term currency speculative demand.

The central bank also said that the weakening imports and continued currency intervention by the central banks, along with regular monthly forex sales of exporters to pay for their rouble denominated taxes, supported the rouble.

Analysts believe the rouble to be overvalued, and they expect it will weaken slowly towards the end the year. The rouble gained 0.5% against the Chinese Yuan, which is the most commonly traded foreign currency in Russia. It now stands at 11.14. (Reporting and editing by Giles Elgood; Gleb Bryanski)

(source: Reuters)