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MOSCOW, March 24 (Reuters) - Russia's central bank intervened in the currency market for the fourth consecutive trading day on Tuesday, buying dollars to keep a lid on the rouble's rally to two-month highs, dealers said.
The rouble remained on a strong footing despite a small bout of profit-taking in Russian stock markets -- which hit 4-1/2 month highs on Monday -- and oil prices.
The rouble firmed as far as 38.57 versus a euro-dollar basket, according to Reuters data. It is now up around 4.5 percent since the start of March.
"The market's a happier place again, spring has sprung and everyone is short dollar-rouble again," said a trader at a foreign bank in Moscow.
"It (rouble strengthening) probably will continue as long as stocks and oil stay bid. The positioning is still quite light."
Dealers said the central bank appeared to be moving its bid in a creeping fashion of around 5 kopecks at a time -- at first buying foreign currency around 38.70 roubles versus the basket, and then moving gradually to 38.59-38.60 by 1045 GMT.
"I don't think the central bank has any desire for a strong appreciation of the rouble," said another dealer.
The rouble recovery comes after it lost around a third of its value in six months to adjust for the worst economic outlook in a decade, with the central bank spending tens of billions of dollars to keep currency depreciation gradual.
The central bank has pledged to keep the rouble within a 26-41 range versus the basket, but has also said it would intervene to prevent excessive volatility. Officials have indicated that they see current exchange rate levels as appropriate given the present price of key export oil.
A weaker currency benefits exporters but Economy Minister Elvira Nabiullina on Tuesday cautioned against excessive moves.
"There is now a real risk of a global devaluation race due to attempts by individual countries to stimulate economic growth. Triggering that process may become as dangerous for the world economy and trade as direct protectionism," she said.
Analysts say the upward pressure on the rouble gives the central bank an opportunity to replenish gold and forex reserves -- down by over a third from their August peak to $376 billion.
The central bank's own measures on Tuesday contributed to tighter liquidity and demand for roubles. It cut the amount on offer at its first repo auction of the day to 10 billion roubles, the lowest since limits were introduced in September. The daily cap for FX swap operations with the central bank was set at zero for the first time since January.
However, dealers said such liquidity restrictions were partly offset by the central bank's rouble selling interventions, as well as by the injection of budget funds into the economy. (Reporting by Andrei Ostroukh and Toni Vorobyova; editing by Stephen Nisbet)