Russian rouble steadies with market focused on geopolitics

March 7 (Reuters) - The Russian rouble traded in a narrow range against the U.S. dollar on Friday, largely consolidating gains made in the previous session as geopolitical developments continue to dominate investor sentiment.

The rouble is up against the dollar this year, mostly thanks to expectations of improved relations between Moscow and Washington that could produce some kind of conflict resolution in Ukraine and a possible easing of sanctions against Russia.

By 0812 GMT, the rouble RUB= was down 0.4% at 89.35 to the dollar in over-the-counter market trade. In the last week, the Russian currency has gradually pulled back from a more than six-month high reached in late February.

Against the Chinese yuan, the most traded foreign currency in Russia, the rouble was down 0.2% to 12.30.

"The news background is likely to remain moderately positive in the short term," said Promsvyazbank analyst Denis Popov.

The rouble could see a new wave of strengthening should exporters decide to start preparing for large month-end tax payments earlier than usual given the rouble's relative strength, he added.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.8% at $70.02 a barrel, after falling to its lowest level since late 2021 earlier this week.