MOSCOW, Dec 30 Reuters The rouble strengthened sharply on Friday, nearing the 70 mark against the dollar as a highly volatile year drew to a close, with the final month of trading dominated by fears over the impact of a Western oil price cap on Russia39;s export revenues.

By 0755 GMT, the rouble was 1.8 stronger against the dollar at 70.87 , recovering some ground from the eightmonth low of 72.9175 hit in the previous session.

The rouble has lost around 13 to the dollar since the price cap on Russian oil exports came into force on Dec. 5, although analysts have said the technical impact would be more strongly felt in JanuaryFebruary.

It had gained 0.4 to trade at 75.58 versus the euro and firmed 2.9 against the yuan to 9.89 .

The finance ministry on Friday said the maximum possible share of Chinese yuan in its National Wealth Fund NWF had been doubled to 60 as it restructures its rainyday fund to reduce dependency on currencies from socalled unfriendly nations.

Recovering imports, which collapsed in the wake of Russia sending tens of thousands of troops into Ukraine as the West imposed sanctions and companies left the market, have also contributed to the rouble39;s weakening.

Even in a pessimistic scenario, the current account surplus could remain at a historically high level, providing the rouble some support, said Dmitry Polevoy, head of investment at Locko Invest.

Our estimates vary from 67.4 to 81.1 per dollar on average in 2023.

Brent crude oil , a global…