EMERGING MARKETS-Israeli shekel rallies over 2% after cenbank leaves rates unchanged

"Additionally, the shekel received much needed support from the BoI, which refrained from lowering interest rates at today's meeting." Overall, the MSCI index for emerging market currencies was flat against the dollar, which ended last week lower after Friday's strong U.S. payrolls number raised the prospect of a delay to Fed rate cuts.

Israel's shekel jumped against the dollar on Monday after its central bank held interest rates steady, while other emerging market currencies took on the subdued global mood as investors weighed the timing of U.S. Federal Reserve rates cuts after a strong jobs report. The shekel gained 2.1% to 3.6808 per dollar by 1325 GMT.

The Bank of Israel (BoI) held its key interest rate at 4.5% for the second straight meeting after cutting them by a quarter-point in January, opting for caution despite a weakening economy. Meanwhile, Israel withdrew more soldiers from Gaza and committed to fresh talks on a potential ceasefire in its six-month conflict in the Middle East.

"The shekel is the best performing currency on the day amid fading geopolitical tensions in the Middle East," said Piotr Matys, senior FX analyst at In Touch Capital Markets. "Additionally, the shekel received much needed support from the BoI, which refrained from lowering interest rates at today's meeting."

Overall, the MSCI index for emerging market currencies was flat against the dollar, which ended last week lower after Friday's strong U.S. payrolls number raised the prospect of a delay to Fed rate cuts. Poland's zloty edged 0.3% higher against the euro.

Low demand and cost pressures in the Polish economy support lower inflation, the majority of members of Poland's Monetary Policy Council (MPC) said during their March rate-setting meeting. Also in focus, nationalist opposition party Law and Justice (PiS) came first in Poland's local government elections, an exit poll showed on Sunday, in a setback for Prime Minister Donald Tusk's ambitions to cement his grip on power.

South Africa's rand climbed 0.6% after central bank data showed that foreign reserves had increased last month. Chinese markets reopened after holidays on Thursday and Friday to more weakness in the currency, keeping the yuan close to last week's four-and-a-half-month low.

Among shares, the Shanghai Composite index and China's blue-chip CSI300 index closed 0.7% and 0.9% lower, respectively. Hong Kong's Hang Seng Index was range-bound even as leader John Lee said the authorities were considering additional measures to support the securities market in the Asian financial hub.

India's blue-chip indexes hit record highs, helped by a rebound in oil-to-telecom conglomerate Reliance Industries and upbeat financial updates from several companies ahead of the earnings season. The EM stocks index edged 0.2% higher.

In Egypt, data showed the annual urban consumer price inflation rate slowed to a lower-than-expected 33.3% in March from 35.7% in February. Nigeria's central bank said it has barred commercial lenders from accepting foreign currency-denominated collateral to grant naira loans, a move that could protect the banking system against a strengthening of the local currency.

HIGHLIGHTS: ** Polish nationalist opposition PiS comes first in local elections - exit poll

** Yellen meets with China's central bank chief, presses case on excess capacity ** Hong Kong looking at more steps to boost stock market, says Lee

** Philippine central bank keeps rates steady, flags delay to cuts ** Thai PM says central bank should cut rates to help economic revival

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)