May 27 (Reuters) - The Russian rouble hovered close to

80 to the dollar on Tuesday, supported by the peak of favourable

month-end tax payments, low foreign currency demand and high

interest rates, with focus turning to the central bank's

rate-setting meeting next week.

By 0857 GMT, the rouble was down 0.2% at 79.90 per

U.S. dollar, LSEG data based on over-the-counter quotes showed.

The Russian currency hit a near two-year high of 79.32 to the

dollar last week.

The Russian currency has strengthened by over 40% against

the dollar this year, a rise analysts have attributed to the

easing of geopolitical tensions - mainly with U.S. President

Donald Trump's administration - and the central bank's tight

monetary policy, which has reduced demand for foreign currency.

However, the rouble is susceptible to changes in the

geopolitical situation, and any recovery in imports could put

pressure on the currency, said Alfa Bank Chief Economist Natalia

Orlova.

"The current stabilisation of the rouble near the 80 mark to

the dollar does not look sustainable," she said.

The government last week said it had extended requirements

for major exporters to sell a proportion of their foreign

currency earnings until the end of April 2026, buttressing the

rouble.

Those restrictions, the Bank of Russia's 21% key interest

rate and the peak of month-end tax payments, which usually see

exporters convert their foreign currency earnings into roubles

to pay local liabilities, are all supporting the rouble.

Economy Minister Maxim Reshetnikov urged the central bank to

consider slowing inflation when it sets interest rates next

week, warning that the Russian economy is facing "hypothermia"

risks.

Against the Chinese yuan, the rouble was unchanged at 11.09

on the Moscow Stock Exchange. Russia's central bank uses yuan

for foreign exchange interventions, and it is the most-traded

foreign currency in Russia.

Brent crude oil, a global benchmark for Russia's

main export, was up 0.1% at $64.77 a barrel.