(Adds Nabiullina comment in paragraph 5, Locko-Invest in paragraph 9, updates prices at 1406 GMT)
By Alexander Marrow
June 9 (Reuters) - The Russian rouble recovered from hitting a more than two-month low past 83 against the dollar on Friday under pressure from geopolitical risks and foreign currency demand, after the Bank of Russia kept interest rates on hold.
By 1406 GMT, the rouble was 0.1% stronger against the dollar at 82.52, earlier hitting 83.04, its weakest since April 7.
It had gained 0.2% to trade at 88.92 versus the euro and firmed 0.5% against the yuan to 11.54 .
The central bank held rates as expected, but issued its strongest signal yet that it may hike interest rates this year, saying that likelihood had grown as inflationary pressures intensify.
Governor Elvira Nabiullina said the rouble's weakening was having an effect on inflation, feeding into the bank's hawkish stance.
Raiffeisen Bank analysts said the central bank is conducting monetary policy this year amid high uncertainty, particularly concerning fiscal policy.
Russia recorded a marginal budget surplus in May, but the deficit for the year as a whole far exceeds the annual plan, and many analysts anticipate that the finance ministry will exceed its 29.1-trillion-rouble ($350.8 billion) expenditure target for 2023.
"Given the pro-inflationary nature of this factor, we expect the central bank to tighten the signal," the analysts said.
The risk of rising rates will be felt in Russia's OFZ treasury bond market, said Dmitry Polevoy, head of investment at Locko-Invest, but has little significance for the rouble and equities.
Brent crude oil, a global benchmark for Russia's main export, was up 0.1% at $76.02 a barrel.
Russian stock indexes were higher.
The dollar-denominated RTS index was up 0.4% to 1,036.7 points. The rouble-based MOEX Russian index was 0.2% higher at 2,715.6 points.
Shares of Russian oil major Surgutneftegaz were up 4.8% after the company reported a profit slump in 2022, while its cash reserves increased to 4.3 trillion roubles.
($1 = 82.9500 roubles) (Reporting by Alexander Marrow; Editing by Sonia Cheema)