Aug 9 Reuters The rouble hit a more than 16month low on Wednesday, hampered by strong foreign currency demand and limited supply, with Russia39;s shrinking trade surplus and widening budget deficit also hurting sentiment.

By 1023 GMT, the rouble was 0.2 weaker against the dollar at 97.32 , earlier hitting 97.48, its weakest point since March 25, 2022.

It had lost 0.14 to trade at 106.84 versus the euro and shed 0.3 against the yuan to 13.46.

The limited supply of foreign currency from exporters continues to exert pressure on rouble positions, due to both problems with repatriating funds and also reduced export supplies in the face of steady demand among importers, Promsvyazbank analyst Egor Zhilnikov said.

The rouble has weakened almost 6 against the dollar in August already, after losing the support of a monthend tax period that usually sees exporting firms convert foreign exchange revenue to meet local liabilities.

It has been under pressure all year from Russia39;s shrinking balance of trade, as export revenues fall and imports rebound, dropping around 28 yeartodate from levels near 70 to the dollar.

Since an abortive armed mutiny in late June, the rouble has dropped almost 13.

It is possible that the dollarrouble pair reaching the 100 mark will force Russia39;s monetary authorities to take some steps to curb devaluation, and exporters to increase sales of FX earnings, Alexey Antonov of Alor Broker wrote in a note.

Yields on Russia39;s benchmark 10year OFZ…