Aug 14 Reuters Russia39;s benchmark stock index retreated on Monday from its highest since before Moscow sent troops into Ukraine on Feb. 24, 2022, after the central bank suddenly announced an emergency policy meeting on Tuesday, ending a sharp slide in the rouble.

President Vladimir Putin39;s economic adviser blamed the central bank39;s soft monetary policy for the weakness of the currency, which has come under heavy pressure from Russia39;s shrinking current account surplus and demand for foreign currency outstripping supply.

But after slumping to its weakest in almost 17 months past 101 per dollar, the rouble pared all intraday losses to strengthen after the central bank announced an extraordinary policy meeting, to be held on Tuesday, raising expectations for a hike in borrowing costs.

The bank last raised its key rate by 100 basis points to 8.5 on July 21.

Another significant increase in the key rate is likely, said BCS World of Investments in a note.

By 1510 GMT, the rouble was 1 stronger against the dollar at 98.45 , firming back below the 100 threshold.

It gained 1.4 to trade at 107.23 versus the euro and firmed 1.8 against the yuan to 13.45 , also paring intraday losses against both.

Sweeping volatility has become the norm for Russian assets. Stocks on Monday briefly hit their highest since before Moscow launched what it calls a special military operation in Ukraine, before falling back.

The roublebased MOEX Russian index was 0.1 higher at 3,157.1…