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Turkey's lira set for best day since June 2024

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Senegal's dollar bonds gain on IMF programme hopes

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Turkey, Kenya, Bulgaria ratings to be reviewed

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MSCI EM FX, stocks indexes set for weekly gains

By Purvi Agarwal

July 25 (Reuters) - Most emerging market currencies

weakened and stocks pulled back on Friday, as investors took

stock of their holdings and braced for an upcoming week packed

with central bank meetings, U.S. data and President Donald

Trump's tariff deadline.

MSCI's index tracking global EM currencies

was down 0.3%, as most Asian currencies depreciated against the

dollar. The index, however, was set to log weekly gains after

two weeks of losses.

This week, markets took on more risk after the U.S. signed a

trade deal with Japan and signalled that more agreements were in

the works, reviving some hopes that the worst tariff impacts

could be avoided.

However, investors were cautious with risk assets in order

to brave the upcoming week, which will feature U.S. jobs data, a

meeting of the Federal Reserve and Trump's August 1 tariff

deadline.

On the day, South Africa's rand fell 0.7%. Most

emerging European currencies were subdued against the euro.

"We would expect market swings to be temporary ... trade

negotiations will ultimately lead to moderate policy, but we

expect a tariff-led economic slowdown to be mild and

short-lived, rather than recessionary," said Mark Haefele, chief

investment officer at UBS Global Wealth Management.

Turkey's lira was 0.7% higher against the

greenback, a day after its central bank delivered a surprise 300

basis point interest rate cut. The currency eyed its biggest

one-day gain since June 2024.

Worries over the independence of the Fed also remained, with

Trump's calls for lower interest rates persistent despite his

reiterating he was not planning to fire the Fed chair.

Haefele said these fears, along with lower interest rates

could continue to impact the dollar, and investors could look to

reduce their holdings.

Russia's rouble was down 0.4% against the greenback,

over-the-counter-market data showed, ahead of a central bank

decision where it is expected to cut rates by 200 basis points.

Stocks in the region also pulled back after two days of

gains, with MSCI's EM stocks gauge down 0.8%. It was

still set for a second week of gains, however.

Equities in Poland fell 0.6%, while Hungary's

were down 0.2%. Turkish stocks were little

changed, though set for their fifth week of gains, their longest

winning streak since December.

South African equities slipped 0.7%, as gold miners

weighed, tracking lower prices of the bullion.

In Senegal, international bonds extended their rally, with

dollar bonds maturing in 2033 gaining more than 1 cent to the

dollar.

The International Monetary Fund said on Thursday it would

send a mission to Dakar next month to discuss the nation's debt

misreporting case and a potential new programme.

Meanwhile, Fitch and Moody's will review their rating on

Turkey, while Kenya and Bulgaria are also due a review.

HIGHLIGHTS:

** Britain and India sign free trade pact during Modi visit

** Shanghai bourse gives bond investors a taste of high

yields with new framework, sources say

** India's RBI to hold rates in August, expected to cut

again later this year

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see