Russian rouble steadies near 80 to the dollar

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 RUB= 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 LCOc1, a global benchmark for Russia's main export, was up 0.4% at $65.07 a barrel.