(Reuters] – On Monday the Russian rouble was stronger than the dollar. This is due to the tax payments made by companies this week, and the anticipation of a central bank rate change on Friday.

The rouble was 1.2% more expensive than the dollar at 73.28, hovering close to the levels of February 24, 2004, when Russia sent hundreds of thousands of soldiers to Ukraine.

The euro had gained 2.6% and it traded at 78.01 against the dollar.

Trading activity has remained subdued relative to the levels that were seen prior February 24, The central bank has imposed capital controls to limit movements in the rouble. It lost the ability of supporting the currency through FX intervention after Western sanctions frozen nearly half the country’s reserves.

According to Reuters analysts, the currency was supported with a record $3 trillion roubles (or $40.25 billion). Companies are expected to pay taxes in this month. Some export-oriented firms must sell foreign currency in order to make these payments.

Veles Capital said that while the tax hike may make the rouble rise, it may also dampen confidence due to the expected rate cut Friday by the central banking.

After two rate hikes in February and April, market players look ahead to the decision of the central bank. In late February there was a 20% increase, then a 17% cut.

And yet, the Russian stock market indexes were mixed.

Dollar-denominated RTS Index was 0.5% higher at 932.9 Points. MOEX Russian, a rouble-based index, was 2.2% lower at 2,188.8 point. This is its lowest level since February 24, 2002.

For Russian equities guide see

Russian Treasury Bonds

($1 = 74.5280 roubles)