MOSCOW, Nov 18 (Reuters) - The Russian rouble hovered

near 100 to the U.S. dollar on Monday after reports that the

U.S. administration had decided to allow Ukraine to make strikes

with U.S. weapons deep into Russia.

By 0830 GMT, the rouble was steady at 99.90 against

the dollar and 105.48 to the euro, according to LSEG

data. The Russian currency weakened 0.6% against the yuan to

13.77 in trade on the Moscow stock exchange.

"Today, amid renewed geopolitical uncertainty, volatility in

the currency market may increase again," BCS brokerage analysts

said.

The rouble and the Russian stock market started rising on

Friday in what some analysts called a "Scholz rally", following

German Chancellor Olaf Scholz's first conversation with Russian

President Vladimir Putin in nearly two years on Friday.

Analysts said a reversal of these gains was likely following

reports about the U.S. administration's decision on missiles.

Brent crude oil, a global benchmark for Russia's

main export, also reacted to geopolitical tensions, rising 0.6%

to $71.40 a barrel after fighting between Russia and Ukraine

intensified over the weekend.

Western sanctions imposed on the Moscow Exchange (MOEX) and

its clearing agent, the National Clearing Centre, on June 12

stopped all trade in dollars and euros at MOEX, making the yuan

the most-traded foreign currency in Russia.

Trade in dollars and euros has shifted to the

over-the-counter (OTC) market, obscuring price data and making

the rouble's exchange rate more volatile.

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

exchange and are a guide for OTC market rates, were up 0.6% at

100.04. The central bank's official exchange rate, which it

calculates using OTC data, was last set at 99.99 to the dollar.