Russian rouble rebounds vs dollar after fall on Trump's sanctions threats

MOSCOW, July 31 (Reuters) - The Russian rouble rose against the dollar on Thursday, regaining some of the ground it had lost after U.S. President Donald Trump's threat to impose new sanctions if there is no progress from the Russian side on a peaceful settlement in Ukraine.

The rouble strengthened by 0.6% as of 1115 GMT to 80.55 to the dollar, getting close to the 80 mark it had crossed in the opposite direction on July 28, according to data compiled by LSEG based on over-the-counter quotes.

"Apparently, the currency market has already priced in the sanctions factor," said analysts from the Bank of Saint Petersburg.

The rouble dropped 4.3% from July 24 to 81.9 to the U.S. dollar on July 30 reacting first to the central bank's rate cut last week and then to Trump's threats, but then started to rebound.

Traders, who spoke on condition of anonymity, said that higher oil prices spurred currency sales by Russian exporting companies, helping to meet short-term speculative currency demand.

They added that regular monthly forex sales by exporters to pay their rouble-denominated taxes, continued currency interventions by the central bank, as well as weak imports also supported the rouble.

Most analysts believe that the rouble is overvalued and expect it to weaken gradually towards the end of the year. Against the Chinese yuan, the most traded foreign currency in Russia, the rouble strengthened by 0.5% to 11.14.