EMERGING MARKETS-Emerging EMEA markets steady as global rally continues

The lira rose 0.6% after weakening past 8 per dollar in the previous session, while the Russian rouble held near a 10-week high as a rally in oil prices supported the exporter's currency. South Africa's rand edged higher after data showed consumer prices rose faster than expected in October.

The Turkish lira snapped three days of falls on Wednesday, while most emerging market currencies clung to recent gains as investors made riskier bets on hopes that COVID-19 vaccines will spur a strong economic rebound next year. The lira rose 0.6% after weakening past 8 per dollar in the previous session, while the Russian rouble held near a 10-week high as a rally in oil prices supported the exporter's currency.

South Africa's rand edged higher after data showed consumer prices rose faster than expected in October. The central bank left its main lending rate unchanged at 3.50% last week, saying inflation was expected to be contained over the medium term, but officials have warned a full economic recovery for South Africa from the effects of COVID-19 was likely to be "slow and difficult".

Still, signs of political stability in the United States and the recent COVID-19 vaccine breakthroughs have put the volatile rand on course for an almost 7% rise this week versus the dollar. Global markets have rallied this week after U.S. President Donald Trump hinted at a smooth White House transition, while hopes of a fiscal boost from the new government weakened the dollar.

"The combination of a Treasury Secretary that markets believe will help economic recovery, a Fed that will underwrite the whole thing by allowing the economy to run hot and inflation to overshot before they tighten, and a handful of very promising COVID-19 vaccines set to arrive in weeks, has sent risk sentiment into overdrive," Kit Juckes, head of FX strategy at Societe Generale, wrote in a note. The MSCI EM equities index slipped after touching a near 34-month high earlier in the session, with China's blue-chip CSI300 index hit by news of a government investigation into the electric vehicle sector.

However, bourses in Russia, Turkey, and the Czech Republic rose between 0.8% and 1.3%. A Reuters poll of market experts forecast Russia's stock market to reach record highs next year, with the ruble-denominated MOEX index expected to scale 3,150 by the end of this year. The index was last trading at 3,121.