* Rouble reaches year's high vs dollar at 29.36
* Rouble's rally to continue on high oil prices, weak dollar
* NDF rates fall, show rouble at 31.43 vs dollar in year
By Lidia Kelly and Andrei Ostroukh
MOSCOW, Oct 14 (Reuters) - The Russian rouble reached new 2009 highs against the dollar on Wednesday, propelled by the global frenzy of investors putting their cash into riskier currencies that promise higher and faster returns.
The rouble closed at 29.43 per dollar
Volatility defined the whole session in Moscow, with investors juggling between increasing their positions and cashing in on their gains.
Profit-taking, which on Tuesday brought the rouble down slightly, was still seen on Wednesday, despite crude prices rising to their 2009 high [O/R] and further broad hammering of the dollar [USD/].
The rouble closed at 35.89 against the euro-dollar basket
that the central bank introduced in 2005 for guiding the
rouble's nominal exchange rate policy
"We believe that the rally on the local market could continue given foreign investors' growing excitement towards the rouble and rouble interest rates," said Maxim Korovin, an analyst with the state-controlled VTB Bank in Moscow.
Based on NDF rates, investors' sentiment towards the
currency in the medium terms continues to rapidly improve.
One-year NDF contracts showed the rouble at 31.43 roubles per
dollar in 12 months, 40 kopecks stronger than they had pointed
to on Tuesday
The profit-taking by investors in recent days has given the central bank a respite from interventions. Dealers said that the regulator's purchases have been minimal -- around $100 million on Wednesday. Last week the central bank bought between $4.5-$5 billion stemming the rouble's appreciation against the basket.
Sergei Romanchuk, a dealer with Moscow's Metallinvestbank, said more serious interventions might be seen Thursday.
"I think tomorrow we will test the central bank's bid (currently at 35.85 vs basket), providing there won't be large client's purchases (of foreign currencies)," Romanchuk said. (Reporting by Lidia Kelly and Andrei Ostroukh; writing by Lidia Kelly; Editing by Toby Chopra)