Russian rouble gains around 6 versus dollar and euro
Closes at 66.30 vs dollar, strongest since March 2020
Currency hits 69.80 vs euro, a more than 2year high
Cenbank39;s capital controls buoying Russian currency

May 4 Reuters The Russian rouble jumped on Wednesday to a more than twoyear high against both the dollar and euro, retaining the support of hefty capital controls as the European Union proposed a new package of sanctions against Russia over events in Ukraine.

Movements on Russian markets are affected by the rouble being propped up by capital controls, while stocks are trading with a ban on short selling and foreign players barred from ditching shares in Russian companies without permission.

European Commission President Ursula von der Leyen proposed a phased oil embargo on Russia, as well as sanctioning its top bank and banning its broadcasters from European airwaves, in a bid to deepen Moscow39;s isolation. 

But with markets returning to action for a few days in the middle of Russia39;s long May holidays and no concrete signs that the central bank will scale back controls any time soon, exporters were actively selling foreign currency, concerned that further rouble strengthening would eat into their holdings.

The rouble closed 6.6 higher against the dollar at 66.30, its strongest since March 2020.

It had gained 5.8 to trade at 70.44 versus the euro , earlier touching 69.80, its most robust position point since February 2020.

Market participants…