EMERGING MARKETS-Currencies slip as dollar firms; focus on more data, rate decisions

Johannesburg shares slipped 0.2% early on, on track to snap a four-day winning streak, while shares in Hungary shed 0.3%. Risk assets have rallied recently while the dollar has been pinned lower amid lingering hopes the U.S. Federal Reserve would cut interest rates sometimes this year, following a soft jobs report last week.

A gauge of emerging market currencies came under pressure on Wednesday as the U.S. dollar resumed its charge upwards, while Poland's zloty slipped in the lead up to an interest rate verdict later in the week.

By 0820 GMT, MSCI's index for emerging market currencies shed 0.2%, set to snap a five-day winning streak. Most currencies in Central Eastern Europe traded in a tight range owing to a lack of catalysts, with Hungary's forint slipping 0.2% against the euro, while the Czech crown also lost 0.2%.

Poland's zloty lost 0.4% against the euro ahead of a central bank rate decision on Thursday, where it is widely expected to hold rates steady at 5.75%. South Africa's rand slipped 0.5% against the dollar as the greenback firmed, while Israel's shekel also shed 0.5% after rising over 1% in the previous session.

A broader gauge of EM stocks also dipped 0.3%, on track to log its first single-day decline in five, following a near 1% fall in EM heavyweights China and Hong Kong. Johannesburg shares slipped 0.2% early on, on track to snap a four-day winning streak, while shares in Hungary shed 0.3%.

Risk assets have rallied recently while the dollar has been pinned lower amid lingering hopes the U.S. Federal Reserve would cut interest rates sometimes this year, following a soft jobs report last week. "Risky assets have retraced the sell-off in recent days and are not far from the highs seen a couple of weeks ago. We are still in the bullish camp for risky assets," said Mohit Kumar chief economist Europe at Jefferies.

"A positive economic backdrop and central bank put on the table creates a positive environment for risky assets." Investor focus would now shift to unemployment data in Czech Republic and Turkey, along with an inflation reading in Hungary due later in the week.

A key measure of world indebtedness has resumed its climb as global debt hit a record high of $315 trillion in the first quarter of the year, fuelled by borrowing in emerging markets, the United States and Japan, a study showed. Later in the day, Brazil would be on the spotlight amongst emerging markets as its central bank is widely expected to cut interest rates by 25 basis points.

HIGHLIGHTS: ** South Africa's net foreign reserves rise to $57.851 bln in April

** Hungary's March output fell by 10.4% y/y For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see For TURKISH market report, see

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