MOSCOW, March 21 (Reuters) - The Russian rouble

strengthened slightly against the U.S. dollar on Friday ahead of

the central bank's rate-setting meeting, following a two-day

correction that interrupted the rally fuelled by talks between

the United States and Russia.

By 0840 GMT, the rouble was up 0.5% at 84.52 against the

dollar in the over-the-counter market. The Russian currency had

lost about 4% against the dollar over the previous two days, but

has still gained more than 25% this year.

Against the Chinese yuan, the most traded foreign currency

in Russia, the rouble was down 0.6% at 11.56 on the Moscow Stock

Exchange.

The Russian central bank is expected to keep the key

interest rate on hold at 21% during its meeting on Friday,

according to a Reuters poll of economists conducted earlier this

week.

Meanwhile, the rouble is anticipated to gradually retreat

after its rally at the start of the year.

(Reporting by Gleb Bryanski)