The Russian rouble hit a 7-year high on Tuesday as capital controls and month-end taxes diminished the negative impact of Western statements on Russia’s default on its international bonds.
The Russian currency was 0.9% stronger against the dollar at 52.93 after hitting its strongest level since June 2015 at 52.5750 on the Moscow Stock Exchange.
Against the euro, the rouble rose 0.8% to 55.88, above pre-operation levels.
Earlier, the rouble was trading near 80 to the dollar and 90 to the euro, affected by sanctions fears and had no support from capital controls.
The White House and Moody’s credit agency said Russia has defaulted as sanctions have effectively cut the country off from the global financial system.
The White House and credit agency Moody’s said Russia had defaulted because sanctions effectively isolated the country from the global financial system but, the Kremlin, which has money to make payments from oil and gas revenues, dismissed the allegations.