* C.bank sells $100 mln to support hryvnia
* Hryvnia under pressure from cash market - analyst
* C.bank comfortable with slow depreciation (Adds c.bank intervention volume)
KIEV, Oct 19 (Reuters) - The Ukrainian hryvnia
The hryvnia hit 7.953 against the dollar at 1120 GMT, its lowest level since early April and compared with 7.950 at the previous day's close.
The central bank then offered to sell dollars at 7.9440
The Ukrainian currency has been weakening since early September after the country's current account deficit surged to $563 million, its highest this year, and after central bank First Deputy Chairman Anatoly Shapovalov, who was closely involved in exchange rate policy, resigned on Sept. 1 and was replaced by Serhiy Arbuzov, seen as a close ally of President Viktor Yanukovich.
Some analysts say the hryvnia's decline -- still relatively small compared with gains made since presidential elections in January -- goes against fundamentals as the country's balance of payments, supported by metals exports, remains healthy.
U.S. economist Nouriel Roubini told a conference in Kiev on Tuesday that, overall, the hryvnia "remains slightly undervalued", adding that "appreciation could actually help with reducing inflation" which more than doubled to 2.9 pct in September.
Some analysts say the currency's gradual depreciation is being driven by speculative buying of dollars.
"The hryvnia remains under pressure from the cash market, as companies and households have been showing interest in buying dollars since August," said a dealer at a Western bank in Kiev.
"The central bank is not in a rush to slow down the process, assuming that a weaker hryvnia will have a positive effect on the economy."
A number of emerging market economies are managing exchange rates to avoid fast appreciation against the weakening dollar and maintain economic competitiveness.
The dealer also said that Ukraine's central bank avoided heavy intervention as that would prompt dollar holders to postpone converting the greenback into the hryvnia as they expected a more favourable exchange rate in the future.
Another local dealer said foreign investors could be selling Ukrainian treasury bills to take profits.
"The yields of T-bills are about to bottom out," he said.
Ukraine's T-bills maturing on Nov. 23, 2011
Ukraine's central bank said this week the net influx of foreign currency into the country had exceeded $5 billion so far this year. But it said the flow of foreign currency remained volatile as it was dominated by export revenues and loans. (Writing by Andrei Ostrough and Olzhas Auyezov; Additional reporting by Natalya Zinets; Editing by Susan Fenton)