(Reuters) – The rouble strengthened on Wednesday and is now heading for levels that were seen prior to what Russia called “a special operation in Ukraine”.

After a long hiatus of a month, stocks rose on the fifth trading day.

The rouble had risen 1% to 84.30 GMT at 0720 GMT and was trading at 82.56 on Moscow Exchange. This level was last reached on February 25, when Russia sent thousands of troops into Ukraine.

In comparison to the euro, the ruble rose 0.8% and landed at 93.36. After briefly touching 90.73 (its highest point since Feb. 23), it was back up 1.8%.

The recent Russia-Ukraine round in Istanbul saw some support for the ruble, as the Russian delegation pledged to cut down on military operations near the Ukrainian capital Kyiv.

After President Vladimir Putin’s demand that all exports to Europe and the United States must be made in Russian currency, this week’s gains for Russian currency are being extended.

European countries that import around 40% of their energy from Russia, and who pay mainly in euro, claim Gazprom, a state-controlled Russian gas company, isn’t entitled to redraw its contracts. Moscow’s demand was rejected by the G7 nations this week.

Recent dynamics driving the rouble are, to some degree artificial. Capital controls have been implemented to stop the flow of cash dollars, euros, and other administrative actions.

On Monday, the central bank began buying gold from banks for a fixed price at 5,000 rubles per gram. [R4N2VL007]

Otkritie Bank stated in a note that the current prices of gold mean the rouble can be firm at 81 dollars if you take into consideration the price.

Sberbank CIB stated that the rouble may continue to firm until central banks ease capital controls.

The rouble was traded on the interbank markets at a rate of 86-87 dollars against the dollar. Banks were willing to purchase euros at 94 and sell euro at 98.50 rubles.

VOLATILE POSTS

Russian stock markets have been moving sharply, sometimes even erratically, in recent days after the central banks allowed the market’s pause to close for nearly a month.

The trading volumes are much lower than usual and those who are not residents of the country are forbidden from buying stocks or OFZ ruble bonds.

VK (a London-listed Internet company) saw its Moscow depositary receipts rise 27% Wednesday following a jump of 72.3% the previous day.

Inter RAO, a Russian state energy company, saw its shares rise 25% when the firm advised that dividends be paid.

The RTS dollar index rose 5.1%, to 926.9points. Meanwhile, the MOEX Russian MOEX index was 3.2% lower at 2,485.7 points.

Aeroflot flag carrier, which is one of the most volatile securities, rose 8.1%. Rosneft oil major was 4.6% more and Sberbank dominant state lender gained 3.5%.