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EMERGING MARKETS-Stocks, FX on track for weekly gains; Russia rate decision on tap
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EMERGING MARKETS-Stocks, FX on track for weekly gains; Russia rate decision on tap
Sep 14, 2024 5:40 AM

(Updated at 0935 GMT)

*

Turkish end-2024 CPI seen at 43.14% - central bank survey

*

Polish lawmakers to start central bank boss probe this

month

*

MSCI EM stock index climbs 0.6%, FX index up 0.5%

By Johann M Cherian

Sept 13 (Reuters) - Currencies and stocks across most

developing economies crept up on Friday amid hopes of imminent

U.S. monetary easing, while investors awaited a rate decision

out of Russia and assessed Turkey's year-end inflation

forecasts.

MSCI's index tracking emerging market equities rose 0.6% and

was on track for weekly gains of around 0.6%, its biggest in

three. The currencies index edged up 0.5% on

Friday.

Data from Bank of America showed emerging market debt saw

outflows for a seventh straight week, while stocks saw inflows

for a 15th straight week, at $2.2 billion.

Investors assessed U.S. data through the week to gauge the

outlook on the Federal Reserve's monetary policy, that could

determine the trajectory of the dollar. The world's most

influential central bank is expected to cut interest rates next

week.

Meanwhile, Russia's rouble depreciated 2% against the

dollar ahead of a central bank policy decision that is expected

to leave borrowing costs at 18%, as signs of a cooling economy

emerge.

Trading in major currencies in Russia has shifted to the

over-the-counter market, obscuring price data.

The yield on Turkey's short-term bonds rose 29

basis points, while rate-sensitive bank stocks fell

0.6% as a survey showed expectations that inflation would slow

to 43.14% by year-end, a rate that is still above the central

bank's 36% target.

In central and eastern Europe, Poland's zloty was

little changed after data confirmed an earlier reading that

showed inflation in August stayed at 4.3%. The currency has

outperformed peers in the region year-to-date as the central

bank has left interest rates unchanged this year.

"The persistence of core inflation means that the (monetary

policy committee) will not be in a hurry to start reducing

interest rates, and the monetary policy easing cycle itself will

be cautious and less aggressive than the market estimates,"

analysts led by chief economist, Rafał Benecki at ING Bank said.

Investors will monitor an investigation starting on

September 24 into government accusations that central bank

Governor Adam Glapinski may have broken the law.

In Africa, the rand was flat, though up around 3% so

far this year, ahead of inflation data and a central bank rate

decision bank next week.

Yields on Sri Lankan hard currency bonds expiring in 2029

slipped over 270 bps ahead of elections in the

following week. A report said bondholders and the government

were holding a fresh round of talks, as the island nation tries

to emerge from a debt crisis.

Maldives' Islamic dollar bond rose for the

fifth day - up by over 3 cents on the dollar - as the

archipelago nation vowed to avoid a debt default.

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