May 23 (Reuters) - The Russian rouble hovered close to a

near two-year high against the dollar on Friday, buoyed by

limited demand for foreign currency and the prospect of

month-end tax payments by major exporters that usually buttress

the currency.

By 0950 GMT, the rouble was up 0.2% at 79.50 per U.S.

dollar, LSEG data based on over-the-counter quotes showed, after

hitting 79.32 to the dollar, its highest level since June 2,

2023, on Thursday.

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.

Against the Chinese yuan, the rouble was down 0.1% at 11.05

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.

The rouble may again test the support level of 11 to the

yuan, supported by the stable situation with oil prices, weak

foreign currency demand and the approaching peak of monthly tax

payments, said Promsvyazbank analyst Bogdan Zvarich.

Monthly tax payments usually see exporters convert their

foreign currency earnings into roubles to pay local liabilities.

Brent crude oil, a global benchmark for Russia's

main export, was down 0.2% at $64.31 a barrel.