May 26 (Reuters) - The Russian rouble steadied near 80

to the dollar on Monday, supported by high interest rates, low

demand for foreign currency and the prospect of upcoming tax

payments by major exporters.

By 0828 GMT, the rouble was down 0.3% at 79.75 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.

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 upcoming tax payments are all playing in the rouble's

favour, said Maxim Timoshenko of Russian Standard Bank.

Month-end tax payments usually see exporters convert their

foreign currency earnings into roubles to pay local liabilities.

"The trajectory of the national currency continues to depend

largely on the dynamics of the restoration of demand for

imports, as well as geopolitical and sanctions rhetoric,"

Timoshenko said.

Against the Chinese yuan, the rouble was down 0.4% at 11.07

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 0.4% at $65.07 a barrel.