Credit: REUTERS/SERGEI KARPUKHINMOSCOW, May 24 (Reuters) - The Russian rouble strengthened on Friday after posting big falls a day earlier, supported by local month-end tax payments and a recovery in oil prices.
At 0734 GMT, the rouble was 0.43% stronger against the dollar at 64.58 RUBUTSTN=MCX and had gained 0.37% to trade at 72.24 versus the euro EURRUBTN=MCX.
Oil prices were on track for their biggest weekly loss this year due to trade tensions, but posted gains on Friday, underpinned by OPEC supply cuts and Middle East tensions. O/R
Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.97% at $68.43 a barrel.
The rouble also felt support from local tax payments that will go through the end of the month. They usually prompt export-focused companies to sell foreign currency to meet liabilities at home.
Analysts at Rosbank said in a note that Thursday's fall in the rouble did not point to a weakening trend.
"The fundamental investor interest in Russian assets remains thanks to the expectations of a monetary policy easing. At the same time, today we can again see intensive sales of export revenues ahead of large tax payments on Monday," they said.
Russian stock indexes also recovered.
The dollar-denominated RTS index .IRTS was up 0.88% at 1,286.59 points. The rouble-based MOEX Russian index .IMOEX was 0.72% higher at 2,636.92 points.
For Russian equities guide see RU/EQUITY
For Russian treasury bonds see 0#RUTSY=MM
(Reporting by Polina Nikolskaya, Editing by William Maclean)
((Polina.Nikolskaya@thomsonreuters.com))
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