Helped by preparations for local tax payments and a rise in oil prices, the Russian rouble hit a 10-week high against the dollar yesterday.

Oil prices, the rouble's main driver, held above $77 per barrel thanks to improving risk appetite and fears of disruptions in oil and gas operations in the Gulf of Mexico during the hurricane season.

Against the dollar, the rouble firmed 3 kopecks to 30.34, after hitting its highest since May 18 of 30.28. Against the euro, it weakened 15 kopecks to 39.24.

Russian stocks also got a boost from the government's privatisation proposal. No change was recorded for the rouble after a draft plan was announced to sell $29 billion of state assets over the next three years.

Mikhail Spolokhov, chief dealer at MDM bank said, “We saw exporters selling foreign currencies in the morning and at the same time the demand (for dollars and euros) was evident, mostly from local banks.”

In a bid to meet domestic tax payments, Russia's export-focused companies usually step up conversion of their dollar and euro revenues in the second part of the month. According to Trust Bank estimates, Monday's tax on natural resources and excise duties could total 170 billion-190 billion roubles.

The Trust Bank added that, while the external backdrop remains positive for Russian assets, the rouble may be damaged by local demand for foreign currencies, especially for the cheap dollar.