By Alexander Marrow

MOSCOW (Reuters – After Russia offered more diplomatic support for European security concerns, the rouble recovered from its lowest point since January.

Moscow rejected renewed Western fears about an incursion into Ukraine, citing Western hysteria. It also repeatedly denies plans to invade. Russian Foreign Minister Sergei Lavrov recommended to President Vladimir Putin Monday that Moscow maintain diplomacy.

The rouble traded 0.8% higher against the dollar at 75.74 by 1407 GMT. This swing from 78.29 (last seen Jan. 28), to 75.93 during volatile sessions.

Due to the Ukraine crisis, the Russian ruble had fallen sharply in last month. It was at 80.4125.

The losses had been reduced in the recent weeks. It reached its highest level since 2022 on Thursday, but then fell again Friday, after the United States asked all citizens of Ukraine to flee Ukraine within 48 hours.

Evgeny Suprov, CentroCreditBank economist said that it makes sense to reduce Russia’s risks to the maximum extent and not to make any moves with Russian assets until there is no risk of a conflict.

After touching the lowest point since Jan. 27, 1988, the rouble gained 1.1% to 86.62 against the euro.

The yields on Russian-dollar-denominated government bonds fell to their lowest point since the beginning of the crisis. The yields for Russia’s 10-year benchmark rouble-denominated OFZ bonds reached 10.17%. This is their highest level since February 2016. Prices are inversely related to yields.

SUPPORT FUNDAMENTAL

Although the currency is susceptible to geopolitical concerns, Russia’s current surplus record and strong commodity prices continue to support it. The central bank’s tightening of monetary policy supports it, making it more appealing to invest in rouble assets.

Russia increased its key interest rate by 9.5% last week, and it indicated that an additional rate rise was probable.

Russia’s primary export was represented by the.

Russian stock indexes dropped to the lowest point since February,

At 1,437.8 point, the dollar-denominated RTS Index was 2.2% lower. At 3,492.0 points, the MOEX Russian index, which is based on roubles, was 1.5% lower.

Aton, an investment management company said that Russian equities were trading under increasing pressure, despite the fact that there are more alarming news stories about Ukraine.