Rouble firms against dollar

MOSCOW, Apr 18 (Reuters): The rouble briefly firmed past the 79 mark against the dollar on Monday, while stock indexes fell as the market lacked new momentum and investors watched developments around what Russia calls "a special military operation" in Ukraine.

The Ukrainian foreign minister said over the weekend there had not been any recent diplomatic communications between Russia and Ukraine at the level of their foreign ministries.

"The continuation of active fighting and a clear stalling of negotiations is the main risk for Russian assets through the risks of new sanctions," said Dmitry Polevoy, head of investment at LockoInvest.

The rouble had gained 1.1 per cent to 79.10 against the dollar after briefly touching 78.80, its strongest since April 12. Against the euro, the rouble firmed 3.3 per cent to 82.60, a level last seen on April 8.

This week the rouble is expected to trade within the range of 79-82 to the dollar and 84-87 to the euro, Rosbank analysts said in a note.

Fluctuations in the rouble are artificially limited by capital controls that Russia imposed in late February as its financial sector and economy have taken a hit from unprecedented western sanctions designed to punish Moscow for sending tens of thousands of troops to Ukraine on Feb. 24.