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Bank of Israel rate decision at 1300 GMT

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India's Nifty 50 at record highs

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EM stocks index flat, FX off 0.1%

By Shashwat Chauhan

Aug 28 (Reuters) - Most emerging market currencies edged

lower on Wednesday as the dollar firmed, with the market focused

on economic data due later this week to gauge the global

monetary policy path.

MSCI's emerging market currencies index was

down 0.1% at 0820 GMT, while stocks were flat.

China's yuan edged 0.04% lower to 7.1267 per

dollar, down for the third straight session as the greenback

firmed. The currency was flat in offshore trading.

The dollar index, which measures the U.S. currency

against a basket of six global peers, was up 0.2%, though pinned

at its lowest level of the year.

EM currencies were boosted last week as the dollar sagged on

dovish comments by U.S. Federal Reserve Chair Jerome Powell,

with the focus now on the size of an interest rate cut.

The Fed's preferred inflation measure - the personal

consumption expenditures (PCE) index - due Friday, could offer

hints on the size of a potential rate cut in September.

"There is probably some room for a small rebound in the

dollar as the effect of Powell's Jackson Hole speech wears off

and risk sentiment softens," said Francesco Pesole, an FX

strategist at ING.

"And while Powell's explicit rate cut guidance has some

significance, investors had fully priced in easing well before

Jackson Hole and the negative USD reaction to the speech looked

a bit overdone from the onset."

Israel's shekel appreciated 0.3% against the dollar

ahead of the Bank of Israel's (BoI) interest rate decision, with

consensus tilted towards keeping short-term interest rates

unchanged for a fifth straight meeting.

Economists remain uncertain over the timing of a rate cut

due to rising price pressures and the Israel-Hamas war, a

Reuters poll showed.

An all-out military conflict with Hezbollah or Iran could

have significant "credit consequences" for Israeli debt issuers,

credit ratings agency Moody's said on Tuesday.

South Africa's rand slipped 0.2%, while the local

stock index was flat.

Global equities were muted, with focus squarely on Nvidia's ( NVDA )

quarterly results due later in the day.

Equities in emerging Europe were mixed, with the Turkish

benchmark outpacing peers with an 0.5% rise, while

Poland lagged with a 0.5% decline.

In Asia, the South Korean won led losses with a 0.7%

fall, while the Thai baht weakened 0.2%.

India's NSE Nifty 50 stock index touched a record

high on Wednesday, while Chinese shares closed

slightly lower.

HIGHLIGHTS:

** IMF approves new credit line for Chile worth $13.8 bln

** Turkish inflation seen sliding to 52.2% in August on base

effect - Poll

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