MOSCOW, Dec 19 (Reuters) - The Russian rouble

strengthened slightly against the U.S. dollar on Thursday ahead

of President Vladimir Putin's live annual news conference and

nationwide phone-in, where he is likely to address economic

issues such as high inflation.

By 0800 GMT, the rouble was up by 1.0% at 103.60

against the dollar, according to over-the-counter market data

from banks. The rouble weakened by 0.18% to 14.20 against

China's yuan in trading on the Moscow Stock Exchange.

Russia's inflation has reached 9.14% so far this year, well

above the central bank's annual estimate of 8.5%, new data

showed on Dec. 18, adding to the arguments in favour of another

aggressive key interest rate hike by the central bank.

The rouble's weakness and volatility in the aftermath of new

U.S. financial sanctions, imposed on Nov. 22, are further

fuelling inflation with households inflationary expectations

running at this year's high.

The rouble fell by as much as 15% against the dollar in

November after U.S. sanctions hit Russia's third-largest lender

Gazprombank, which handled payments for Russian energy. The

sanctions prompted panic buying of foreign currency.

The rouble has since regained some of the lost ground and

stabilised above 100 to the dollar, seen by the market as a new

equilibrium level, at which the Russian currency could remain

for some time provided there are no further external shocks.

One-day rouble/dollar futures, which trade on the Moscow

Stock Exchange and are a guide for the over-the-counter exchange

rate, were flat at 104.6. The Russian central bank set an

official exchange rate at 102.78 to the dollar.

(Reporting by Gleb Bryanski; Editing by Emelia

Sithole-Matarise)