EMERGING MARKETS-FX, stocks higher after Trump delays tariffs; rate decisions in focus

By Purvi Agarwal

Feb 14 (Reuters) - Most emerging markets rose on Friday, as investors enjoyed a short reprieve when U.S. President Donald Trump did not immediately impose threatened reciprocal tariffs, and with interest rate decisions due in Russia and Romania.

Adding to a recent flood of tariff-related headlines, Trump tasked his economics team with devising plans for reciprocal tariffs on every country taxing U.S. imports on Thursday.

Analysts expect this process to leave room for negotiations, as with India, where it agreed to start talks for an early trade deal and resolve their standoff over tariffs, promising to buy more American energy and military equipment.

"The tariffs are due to come into effect in April, implying that the next few weeks could see intense negotiations with U.S. trading partners to avoid or reduce tariffs," said Mohit Kumar, chief European economist at Jefferies.

The dollar index =USD dipped slightly, lifting MSCI's index tracking global EM currencies .MIEM00000CUS to its highest in more than two months and setting it for its best week in three.

"The lack of concern about the latest tariffs from Trump suggests that the FX market continues to think that he is posturing, and will tone down the tariffs at the last minute," said Kathleen Brooks, research director at XTB.

The Romanian leu EURRON= was flat ahead of a local monetary policy decision in which the central bank is widely expected to leave rates unchanged.

Russia's rouble RUB= fell 0.7% against the dollar, after U.S. Vice President JD Vance told a newspaper that the U.S. could hit Moscow with sanctions and potential military action if Russia does not agree to a peace deal with Ukraine that guarantees its long-term independence.

Vance, among a slew of other policymakers, was scheduled to speak at the Munich Security Conference.

The rouble gained for the last four sessions and was on track for its best week in six. An interest rate decision was due later on Friday.

The South African rand ZAR= strengthened 0.5%, while its stocks .JTOPI jumped 1.2%. The index hit record highs in the last three sessions, and is approaching three weeks of gains.

Regional stocks were mixed on the day, with indexes in Romania .BETI up 0.7% and Poland .WIG20 down 0.3%. MSCI's stocks gauge .MSCIEF was up 0.9%.

Emerging Europe currencies were mixed against the euro EUR=. Hungary's forint EURHUF= was set for its sixth consecutive week of declines, its longest losing streak since August 2021.

Data showed Polish inflation at 5.3% on an annual basis in January, above forecasts of 5%.

S&P is due to review Lebanon's rating on Friday, while Fitch will review the Czech Republic's.

Meanwhile, Senegal's finance minister said the country hopes for a new International Monetary Fund programme by June, as the government vowed to investigate alleged malfeasance after an audit found that former authorities misreported key data.

HIGHLIGHTS:

** Buyout firms' equity-debt double act is creaking

** Chinese exporters brace for 'rat race' in shift away from US

** World Bank trims Thailand's 2025 GDP growth outlook

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