* Markets look past Trump threats to amend stimulus bill
* Rouble snaps 3-day losing run
* Lira firms on rate hike expectations
Dec 23 (Reuters) - Emerging market currencies rebounded on
Wednesday from declines earlier this week, with Russia's rouble
snapping a three-day losing run and the Turkish lira firming in
hopes of a central bank rate hike this week.
The rouble gained 0.8%, shrugging off a decline in
oil prices as the U.S. dollar weakened against its major peers.
The currency had touched a three-week low earlier this week,
driven by a selloff in global markets on worries about a highly
infectious new variant of coronavirus that broke out in Britain
and anti-Russian sanctions.
Markets broadly looked past U.S. President Donald Trump's
threat on Tuesday to not sign an $892 billion coronavirus relief
bill that includes desperately needed money for individual
Americans, saying it should be amended to increase the amount in
the stimulus checks.
"The market reaction reflects the belief that the bill will
be amended and signed in a couple of weeks," said Hussein Sayed,
a strategist at FXTM.
Turkish lira firmed 0.4%, as investors awaited the
outcome of a central bank meeting on Thursday.
Turkey's central bank is expected to raise its key interest
rate by 150 basis points, a Reuters poll showed, as it aims to
cool inflation and bolster credibility under new governor Naci
The South African rand rose 0.2% after getting
hammered this week, as countries around the world closed their
borders to South Africa following their identification of a
mutated variant of the coronavirus.
Central European currencies were adrift against the euro,
with Hungary's forint and Poland's zloty
down 0.1% on uncertainty around the Brexit trade deal.
Britain's ITV said a Brexit trade deal between the United
Kingdom and the European Union is possible later in the day,
after progress in talks on fishing rights.
Israel will hold a snap election in March after parliament
failed on Tuesday to meet a deadline to pass a budget,
triggering a ballot presenting new challenges for Prime Minister
However, the shekel shrugged off the news that the country
will face the fourth parliamentary election in two years with
the currency gaining 0.2% against the dollar.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Shashank Nayar in Bengaluru; Editing by Rashmi