(Reuters) – The Russian rouble rose to a record high of over two years against the euro and climbed back toward 66 against the dollar on Friday. This was supported by weak foreign demand and capital controls, while the specter of additional sanctions against Moscow hung in the air.

Although the European Union Executive on Wednesday suggested the harshest sanctions ever against Russia due to its actions in Ukraine’s conflict, several countries were concerned about Russia’s impact on their oil imports.

By 0719 GMT the rouble was trading at 69.57 per euro after having gained 0.8% earlier, before closing below 69.1250. That is its best point since February 2020.

At 66.24 the rouble was 1.1% more expensive than the dollar. This is close to the nearly two-year peak of 65.3125, which was reached on Thursday. It had been at this level since the beginning of the COVID-19 pandemic.

Due to the mandatory conversion of foreign currencies by companies that are export-oriented, the rouble has risen in recent weeks. In addition, weaker demand for euros and dollars has resulted from waning imports as well as restrictions on cross-border transaction.

Otkritie research in a note stated that “The Rouble will remain relatively stable” or may even grow again due to the high price of oil and weak demand for foreign currencies.

The rouble is moving faster than normal because market liquidity was thinned after Russia sent thousands of troops to Ukraine on February 24.

Trading activity has slowed as the markets will be closed three days a week during Russia’s May holiday.

Russia’s largest export was up 0.8%, with a $111.7 barrel being the global benchmark.

Russian stock indexes are mixed.

RTS, a dollar-denominated index, was 0.8% lower at 1,128.9 point. 2.372.7 points was the rouble-based MOEX Russian Index. It was 1.3% below.

Promsvyazbank analysts predicted that equity markets would drop before another long weekend.