MOSCOW, March 19 (Reuters) - The Russian rouble

interrupted its rally and weakened against both the U.S. dollar

and China's yuan on Wednesday following a conversation between

U.S. President Donald Trump and Russian President Vladimir Putin

that focused on the war in Ukraine.

In the telephone call, Putin agreed to stop attacking

Ukrainian energy facilities temporarily but declined to endorse

a full 30-day ceasefire that Trump had hoped would be the first

step toward a permanent peace deal.

By 0840 GMT, the rouble was down 1.3% at 82.80

against the dollar in the over-the-counter market. Against the

Chinese yuan, the rouble was down 1.2% at 11.36 in trade on the

Moscow Stock Exchange (MOEX).

The Russian currency hit its strongest levels against both

the dollar and the yuan since June 2024 this week. It is up 27%

against the dollar so far this year on expectations of easing

tensions between Russia and the United States.

Russia's Deputy Prime Minister Alexander Novak said on

Tuesday that a return of foreign investors to the Russian market

and resulting capital inflows played a role in the rouble rally.

"We are also observing an inflow of foreign capital into the

domestic market, taking into account the geopolitical

situation," Novak was quoted in the Russian media as saying.

The stronger rouble is helping the central bank fight

inflation, its main headache. However, it is also dealing a blow

to exporting companies as well as state budget revenues, which

depend heavily on oil and gas exports that are traded in

dollars.

Denis Popov from PSB bank noted that Novak's statement was

the first official confirmation of capital inflows taking place

as international investors begin to eye Russian assets again,

creating the potential for further strengthening of the rouble.

"Considering that the end of March should see an increase in

currency sales by exporters, the risks of further strengthening

of the rouble are very high," Popov said.