Rouble fell past 101 per dollar on Monday
Rouble rises to around 96 per dollar on Tuesday
Central bank to hold extraordinary policy meeting
Market eyes rate hike to 12

MOSCOW, Aug 15 Reuters The Russian rouble rose on Tuesday as investors bet the central bank would hike rates at an extraordinary policy meeting after the Russian currency tumbled past 101 per U.S. dollar on Monday and prompted a Kremlin call for tougher monetary policy.

The rouble , which has lost more than a fifth of its value against the dollar since the Ukraine war began, rose 1.6 to 96.14 per dollar by 0546 GMT after falling close to 102 in intraday trade on Monday.

It had gained 2 to trade at 104.92 versus the euro and firmed 1.8 against the yuan to 13.15 .

Russia39;s central bank will hold an extraordinary meeting at on Tuesday to discuss the level of its key interest rate, currently at 8.5. A decision will be published at 1030 Moscow time 0730 GMT, the central bank said.

We believe the regulator may raise the key rate to 12, which will help the rouble return to more reasonable fundamental levels in the coming months below 90 to the dollar, said Sber Investments in a note.

The central bank39;s most recent emergency hike came in late February 2022 with a rate raise to 20 in the immediate fallout of Russia39;s invasion of Ukraine. After that, the bank steadily lowered the cost of borrowing before quickening inflation forced a 100basispoint hike to 8.5 last month.

The central bank has all…