Rouble down slightly amid little progress over Ukraine conflict

MOSCOW, Aug 21 (Reuters) - Russia's rouble fell slightly on Thursday, despite rising oil prices, amid little news on a resolution to the conflict in Ukraine.

At 1300 GMT, the rouble was down 0.1% at 80.37 to the dollar, according to data compiled by LSEG based on over-the-counter quotes.

The rouble was 0.2% weaker at 11.17 against China's yuan, the most traded foreign currency in Russia.

"Investors continued to wait for geopolitical news, cautiously playing on some improvement in the oil market," Evgeniy Loktukhov of Promsvyazbank said in a note.

Oil prices continued to rise on Thursday thanks to signs of strong demand in the U.S., while uncertainty surrounding the resolution of the Ukraine conflict also boosted prices.

The rouble was supported by the approaching tax period, when exporters sell currency, and the central bank's high key rate.

Data published on Wednesday by Rosstat, Russia's statistics service, showed deflation for a fifth week and a decline in annual inflation to 8.46%, but inflation expectations among the population rose in August.

"The persistence of elevated inflation expectations implies a softening of monetary conditions in real terms...Data from surveys of businesses and the population, in contrast to current price dynamics, argue in favor of a more cautious step (a 100 basis point cut)," Renaissance Capital analysts wrote.