By 0850 GMT, the rouble was 0.6% weaker against the dollar at 78.70 RUBUTSTN=MCX, earlier hitting 79 for the first time since April 2.

It had lost 0.8% to trade at 91.62 versus the euro EURRUBTN=MCX, a more than 4-1/2 year low, reaching levels not seen since Jan. 1, 2016.

After losing more than 1% in the previous session to trade above 78, the rouble entered the overbought zone, said Veles Capital analyst Elena Kozhukhova in a note. However, deteriorating global appetite for risk this week may push the rouble to 80 versus the greenback, she added.

New clashes between Armenian and Azeri forces over the territory of Nagorno-Karabakh, a breakaway region inside Azerbaijan run by ethnic Armenians, exerted further negative pressure on rouble assets, said Alor Broker analyst Alexei Antonov.

“It is always bad when neighbours are at war, especially if tanks and aviation are used,”