(Reuters) – The Russian rouble fell to 62 against US dollars on Monday. This was due to capital controls and internal market flows. Stock indexes suffered further losses following the recent Western sanctions.

The rouble against the dollar was 0.9% lower at 61.46 GMT. It stabilized in the narrow range 60.0-62.5 over the last few days following rapid swings in May.

The rouble fell 0.8% against the euro to 65.31. This is a significant decline from the near-seven-year high of 57.010 on May 25, which was reached.

Moscow Exchange’s rouble is driven by capital controls Russia instituted to protect its financial systems soon after it deployed tens and thousands of troops in Ukraine on February 24.

At banks, the Russian currency is still much less strong. VTB (Russia’s second-largest lender) offered cash dollars and euros to be sold for 89.00 and 84.00 rubles respectively.

The focus remains on sanctions. The EU agreed to a sixth round of sanctions on Russia Friday in response to what it called a “special military operations” in Ukraine. This included an imposition ban on Russian petroleum and sea products for six to eight months.

Moscow’s National Settlement Depository, Russia (NSD) will be closed to transactions in euro after the European Union included the entity on its expanded sanctions list.

The yields of 10-year OFZ Treasury bonds dropped to 9.01% on the local debt market as investors waited for the central bank rate decision. 2.year OFZ yields dropped to 9.15% as prices moved in the opposite direction.

Promsvyazbank analysts stated in a note that short-term OFZ bonds have already priced in a reduction to the key rate from 11% to 10% this week.

Russian stockindices fell.

RTS’s dollar-denominated index dropped 1.9% to 1,176.5. With 2,302.9 point, the MOEX Russian from rouble was 0.3% smaller.

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