(Reuters) – The rouble has extended its gains and reached the 60-mark against the dollar on Friday. This was due to capital controls and tax payments in Russia, which usually result in increased demand.

So far this year, the rouble has firmed more than 24% despite a full-scale economic crisis and has become the best-performing currency http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html, artificially supported by controls that Russia imposed in late February to shield its financial sector after it sent tens of thousands of troops into Ukraine.

0733 GMT: The rouble climbed more than 3% against the dollar to 59.81 at 07:33 GMT. It was last seen there on April 6, 2018.

In comparison to the euro, the rouble grew by almost 4% to 61.990.

Real life was more difficult for the rouble. Sberbank (Russia’s most important lender) was offering cash dollars to customers for 66.65 Russian rubles and euros at 69.24 Russian rubles.

While the stronger rouble can help to curb inflation and benefits importers, it is detrimental for those who export services and goods abroad. It also reduces incomes for Russia’s dependent export budget.

According to analysts, the Russian authorities don’t want to see the rouble strengthen from its current level and they expect that the currency will weaken before the end of the year.

The central bank granted banks permission to sell foreign currencies to citizens starting May 20. This is a clear sign that the authorities want to loosen capital controls.

Russian stock indexes are mixed.

Dollar-denominated RTS Index rose 2.2%, to 1,272.7 Points. Pressured by the appreciation of the ruble, 0.5% was lost in MOEX Russian’s index, 2,425.5 points.

For Russian equities guide see

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