(Updated at 9:11 a.m. GMT)

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U.S. Fed expected to hold rates, signal rate cuts close

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Lira touches record low to the dollar

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MSCI EM on course for first monthly loss since January

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Poland CPI below expectations

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Ethiopia's birr slips after World Bank deal

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Central bank decisions from Chile, Colombia and Brazil on

deck

By Lisa Pauline Mattackal

July 31 (Reuters) - Currencies of most emerging European

countries slipped against the dollar on Wednesday, with the

Turkish lira touching a record low, while a gauge of EM stocks

rose as investors awaited the Federal Reserve's interest rate

decision later in the day.

MSCI's indexes tracking emerging market stocks

jumped 1.1%, lifted by gains on Asian bourses on hopes for

economic stimulus in China after data showed the country's

manufacturing activity slipped to a five-month nadir in July.

Additionally, geopolitical risks remained on the radar after

Hamas said its leader Ismail Haniyeh was assassinated in Iran,

drawing worries about further escalation in the region.

Turkey's lira dipped 0.2% versus the dollar,

touching a fresh all-time low of 33.1075 against the greenback,

while stocks in Turkey dipped 0.5%.

Currencies in emerging European economies edged lower, with

the Hungarian forint and Czech crown losing

about 0.1% against both the euro and the greenback.

Meanwhile, the Polish zloty slipped 0.2% against

the euro after data showed inflation jumped significantly in

July, from 2.6% to 4.2% year-on-year, primarily due to the

government's partial withdrawal of measures aimed at keeping

down energy prices.

Investors awaited the U.S. Federal Reserve's policy decision

later on Wednesday, where the central bank is expected to hold

rates but could potentially signal rate cuts are imminent.

The Fed is a key event on a central bank-packed week. The

Bank of Japan hiked interest rates earlier in the day. Decisions

are on deck from the central banks of Colombia, Brazil, Chile on

Wednesday, and the Czech Republic on Thursday.

"The BoJ and FOMC meetings bookend and are the focal points

for a very busy day," said Marc Ostwald, global strategist at

ADM Investor Services International.

"It is also month end, and price action thus far this week

suggests this has been a constraint, above all given all of the

event risk this week, not to mention long-standing national and

geopolitical issues," Ostwald said, adding plenty of trading

activity was likely post the Fed meeting as investors rebalance

portfolios.

The emerging markets stock index is on pace for its first

monthly decline since January, while an index tracking EM

currencies is on track to rise about 0.3%, as

markets have grappled with a U.S. tech-led equity selloff, while

gauging the likelihood of lower interest rates in the U.S.

Emerging market bonds have fared better, with J.P. Morgan's

index of dollar-denominated EM bonds returning 1.6% in July,

putting its year-to-date gains at nearly 4%.

Elsewhere, the World Bank's board approved $1.5 billion in

financing for its first ever budget support lending to Ethiopia,

it announced on Tuesday.

Ethiopia's birr was trading around 74.738 against the

dollar.

Nigeria's naira was also under pressure, quoted at

1610 to the dollar and on course to fall nearly 7% in July.

HIGHLIGHTS:

** Hong Kong Q2 GDP expands 3.3% on year, Taiwan GDP tops

forecasts

** Venezuelans protest as observers say presidential vote

undemocratic

** Foreign banks' purchases of Indian bonds hit record high

in 2024

For TOP NEWS across emerging markets

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For TURKISH market report, see

For RUSSIAN market report, see