April 20 Reuters Russias rouble was supported by stronger oil prices on Tuesday, but gains were limited as tensions with Ukraine ramped up, while emerging market stocks rose on improving sentiment over a global economic recovery.

The rouble added about 0.2 as oil prices rose on the prospect of improving global demand. But the currency has marked volatile sessions after the United States imposed sanctions on Russia last week.

Tensions escalated on Monday after Moscow was said to have assembled more than 100,000 troops on Ukraines border. An ongoing row with the Czech Republic also has the potential to dampen sentiment over Russian financial markets.

The U.S. has already imposed fresh sanctions on Russia and any military move would see these escalated. However, so far they have had no impact on Moscow, and the most painful sanctions mean pain for the West too, and even risk fragmenting the global financial system, Rabobank analysts wrote in a note.

Russian stocks came about 0.2 off record highs. Weakness in the rouble and recent U.S. sanctions targeting Russian debt has seen investors pivot into Russian equities to maintain exposure to the country.

Emerging market stocks rose, with Asian equities supporting the MSCIS index of equities as economic prospects over the region improved.

Broader emerging market currencies were muted on Tuesday, as weakness in the dollar was offset by a damaging second wave of COVID19 cases. Countries including India, Brazil, Turkey and…