MOSCOW, Dec 12 (Reuters) - The Russian rouble rebounded

against the U.S. dollar and China's yuan on Thursday after

falling by about 5% against the dollar in the previous session,

with analysts expecting more sharp moves in a volatile market.

By 1200 GMT, the rouble was up 2% at 103.50 against

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

banks. The rouble had strengthened by 0.25% to 13.88 against the

yuan in trading on the Moscow Stock Exchange.

Analysts said foreign currency inflows remained limited in

the aftermath of U.S. financial sanctions imposed on Nov. 22,

which led to the rouble's sharp weakening at the end of last

month.

"Despite the improvement, the supply of foreign currency is

still limited by the foreign trade factor. Therefore, a

resumption of the downward trend in the rouble's exchange rate

is likely," BCS brokerage analysts said.

The U.S. sanctions hit Gazprombank, Russia's third largest

lender, which handles payments for energy trade with Europe,

disrupting foreign trade transactions and the supply of foreign

currency to the Russian market.

Energy transactions with Gazprombank will stop on Dec. 20,

but in an earlier separate license issued in October, the U.S.

Treasury's Office of Foreign Assets Control (OFAC) authorized

energy transactions with nine Russian banks, including

sanctioned Sberbank and VTB.

"If the issues with payments for exporters are not resolved

and imports do not decrease, the pressure on the rouble will

persist," said economist Evgeny Kogan, adding that even the new

interest rate hike by the central bank will not help the rouble.

Russia's state oil firm Rosneft's deal with Indian private

refiner Reliance to supply nearly 500,000 barrels per

day (bpd) worth $13 billion over 10 years, reported by Reuters,

also added to longer-term optimism about the rouble.

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

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

rate, were down 0.6% at 103.05. The Russian central bank set an

official exchange rate at 103.27 to the dollar.