MOSCOW, Jan 22 (Reuters) - The Russian rouble

strengthened to below 99 to the U.S. dollar amid market optimism

over easing tensions between Russia and the West over the

Ukraine war, following the inauguration of U.S. President Donald

Trump.

The rouble had strengthened by 0.9% to trade at 98.60 to the

dollar by 0815 GMT, the strongest level since Dec. 5,

over-the-counter market data showed.

The rouble was 0.3% firmer against China's yuan at 13.53 in

trading on the Moscow Stock Exchange (MOEX).

The rouble has strengthened by almost 13% against the dollar

since the start of the year, becoming the best performing

currency across emerging markets in 2025. It gained more than 3%

since Monday, the day of Trump's inauguration.

"Rouble purchases may have been driven by the reaction to

statements by Trump and (Russian President Vladimir) Putin about

their intention to hold negotiations on the Ukrainian conflict

in the near future," said Veles Capital's Elena Kozhukhova.

She called the rouble's recent fluctuations "speculative"

and said there were "no guarantees of an improvement in the

geopolitical situation.

The rouble is supported by increased forex sales by the

state and exporting companies and stronger prices for oil,

Russia's main export commodity, which offset the impact of U.S.

energy sanctions imposed on Jan. 10.

"Two factors came into play: more active sales by exporters

due to the approaching tax payment period, and speculative

demand for the rouble amid prevailing expectations of easing

geopolitical tensions," said Denis Popov from PSB Bank.

One-day dollar/rouble futures, which trade on MOEX and are a

guide for the over-the-counter exchange rate, were flat at

100.26. The Russian central bank set the official exchange rate

at 99.93.