The recent rally of the Russian rouble came to a standstill this Friday, 26th February, as domestic companies were completing monthly tax payments and concern about the pace of global economic recovery put pressure on crude oil prices.

This morning, the rouble was trading at 34.84 versus the dollar-euro basket, four kopeks weaker than at close of business on Thursday.

The weakening of the rouble could be attributed to an evening out of recent gains against the globally strengthening euro. On Friday morning trade was at 40.78 roubles per euro, 20 kopecks down on Thursday's close. However, the rouble gained some kopecks on the dollar, strengthening to 30.04 per dollar versus 29.97 at the previous session's close.

Oil is Russia's chief export and, along with gas production, makes up approximately one third of the country's GDP. Oil remained at $78 on Friday, despite falling over 2 per cent on Thursday, amidst fears for the US economy, offering some reassurance for investors who had been betting on an increase in crude prices to help spark a rouble gain.

However, economists at Capital Economics have predicted that the likelihood of a repeat in boom prices for oil is slim.

With February tax and other bill payments due this week, it is likely that local rouble demand has peaked. The rouble has a tendency to strengthen at the end of every month when tax and other bills are due for payment.