Russian rouble strengthens vs US dollar, Chinese yuan in thin holiday trade

The Russian rouble strengthened against both the U.S. dollar and the Chinese yuan on Monday, despite falling oil prices and threats of more Western sanctions, in thin trade between Russia's May Day and Victory Day holidays. 

At 1140 GMT, the rouble was up 2% at 81.1 against the U.S. dollar, LSEG data based on over-the-counter quotes showed.

The Russian currency has risen by almost 40% against the dollar so far this year. 

Against the Chinese yuan, which is used by Russia's central bank for its foreign exchange interventions and is the most-traded foreign currency in Russia, the rouble was up 1.4% at 11.24 to the yuan on the Moscow Stock Exchange. 

"The rouble's exchange rate continues to depend on geopolitical rhetoric, the intensification or de-escalation of which can add volatility to the currency market at any moment," said Maxim Timoshenko from Russian Standard Bank. 

Oil prices fell more than 1% on Monday after producer group OPEC+ decided over the weekend to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook.