May 18 Reuters The Russian rouble pared early losses to gain against the dollar on Wednesday and headed back towards a fiveyear high against the euro, as some gas buyers in Europe sought to meet Russia39;s demand for rouble payment and sovereign default risk resurfaced.

The rouble has become the bestperforming currency this year despite a fullscale economic crisis, artificially supported by controls that Russia imposed in late February to shield its financial sector after it sent tens of thousands of troops into Ukraine.

By 1027 GMT, the rouble was 0.4 stronger against the dollar at 63.33 , not far from the 62.6250 level reached on Friday, its strongest since early February 2020.

It had gained 0.9 to trade at 66.45 versus the euro , edging back towards its strongest level since mid2017 of 64.9425, which it touched last week.

The rouble39;s rally to multiyear highs was slowed this week as the central bank raised the ceiling for crossborder transactions, allowing Russian residents and nonresidents from friendly states to channel foreign currency abroad at an amount equivalent to up to 50,000 a month. The previous limit was 10,000.

Exportfocused companies are still obliged to convert 80 of their revenues, because the central bank cannot intervene after the West froze about half of its gold and foreign exchange reserves.

Gas buyers in Europe were fumbling to solve a payment conundrum, after Moscow at the end of March demanded foreign buyers start to pay for gas in…