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(Recasts with rouble falling, updates prices throughout)
MOSCOW, Feb 20 (Reuters) - The Russian rouble slipped on
Monday, but remained above a ten-month low set last week as
demand for the currency increased ahead of month-end tax
payments by exporting firms.
At 1400 GMT, the rouble was down 0.1% against the dollar at 74.39, erasing earlier gains. The currency had climbed as high as 73.59 , pulling further clear of the 75.30 mark, its weakest since April 25, hit during trading on Friday.
Friday's session saw the highest USD/RUB trading volumes so far this year, Refinitiv data showed. The rouble was flat at 79.30 versus the euro and fell 0.7% against the yuan to 10.73 , having gained against both currencies earlier in the session. After weakening gradually for more than a month, the rouble should begin to be in greater demand before month-end taxes are due in a single payment on Feb. 28, when exporters typically convert their foreign currency revenues, analysts say. "Exporters' preparation for the peak of tax payments will show support for the national currency, in the run-up to which they will show increased demand for rouble liquidity," said Bogdan Zvarich, chief analyst at Banki.ru.
Following 12 days of continuous decline, the rouble could stage a technical correction in the coming days, said Alor Broker in a note, tempering that forecast with a warning that geopolitical risks could trigger a fresh fall at any moment.
EU leaders are discussing a new batch of sanctions against Russia over its actions in Ukraine, with politicians, military leaders and Russian banks expected to be targeted.
Market players are also likely to pay close attention to President Vladimir Putin's annual showcase address to parliament, scheduled for Feb. 21. The Russian market will be shut on Thursday as Russia celebrates Defender of the Fatherland day and open for only limited trading on Friday.
Brent crude oil , a global benchmark for Russia's main export, was up 1.3% at $84.1 a barrel.
Russian stock indexes were lower. The dollar-denominated RTS index was unchanged at 920.0 points. The rouble-based MOEX Russian index was 0.3% higher at 2,174.9 points. For Russian equities guide see For Russian treasury bonds see (Reporting by Alexander Marrow; Editing by Kirsten Donovan and Bernadette Baum)
