* Czech crown weakens ahead of c.bank policy decision
* EM stocks stabilize after dire start to the week
* Lower oil prices hit Russian rouble, stocks outperform
Sept 23 (Reuters) - Currencies in the developing world fell
against the U.S. dollar on Wednesday, as investors preferred the
safety of the greenback on risks to global economic revival from
another round of coronavirus-induced curbs in Europe and the UK
due to rising cases.
MSCI's index of emerging market currencies
slipped for the third session, led by losses in the South
African rand which dropped about 1%, easing further from
a six-month high hit last week.
The Turkish lira set a new low against the dollar at
7.68, extending a series of record lows amid worries about
negative yields due to high inflation and concerns over the
central bank's depleted forex reserves.
Economists expect Turkey's central bank to keep policy rate
on hold on Thursday despite the lira's slump, but raise funding
costs through back-door measures.
In central Europe, the Czech crown dipped 0.2%
against the euro. Later in the day, Czech National Bank (CNB) is
likely to leave interest rates unchanged at 0.25% after 200
basis point cuts this year to cushion the economic blow from the
"The room for more monetary easing to zero from its current
0.25% has diminished, but a steady CNB meeting outcome today is
not expected to offer the CZK any concrete support in the
current bearish environment," UniCredit analysts said in a note.
"It may be interesting to see whether the CNB opts to issue
a warning that the fiscal stimulus that the government intends
to push through in 2021 might be too much."
Lower oil prices pressured the Russian rouble ahead
of the finance ministry's treasury bond auctions, a gauge of
global market sentiment towards Russian assets.
Fears of more sanctions on Moscow have weighed on Russian
assets in recent weeks over the political crisis in neighbouring
Belarus and the suspected poisoning of Kremlin critic Alexei
However, the rouble is expected to receive some support from
month-end tax payments that usually prompt export-focused
companies to convert their dollar and euro revenues into roubles
to meet local liabilities.
Russian stocks outperformed peers, with rouble-based index
rising 2%. Leading gains on the index, internet giant
Yandex jumped for a second straight session after
announcing it was in talks to buy online bank Tinkoff for $5.48
Stocks in Johannesburg gained 0.6%, while those in
Istanbul firmed about 1%.
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(Reporting by Medha Singh in Bengaluru; Editing by Rashmi Aich)