EMERGING MARKETS-Russian rouble slides on U.S. sanctions threats; c.bank decisions eyed

* U.S. report shows Russian meddling in 2020 U.S. elections

* Biden says Putin "will pay the price," rouble slides up to 1.5%

* Fed, Brazil central bank decision eyed

* Brazilian real extends losses to fourth day (Updates after Biden comments on Russia, adds Latam prices)

By Susan Mathew

March 17 (Reuters) - Russia's rouble slumped more than 1% on Wednesday, putting it on track for its worst one-day sell-off in three weeks after, U.S. President Joe Biden's strong rhetoric against Russian President Vladimir Putin regarding 2020 U.S. Presidential elections.

"He will pay a price," Biden told ABC News in an interview that aired on Wednesday. A U.S. intelligence report on Tuesday bolstered longstanding allegations that Putin directed efforts to swing the election to Donald Trump, and sources said sanctions on Russian could come as soon as next week. rouble RUB= deepened looses to hit session lows as was last trading at 73.87 against the greenback. Russian dollar-denominated bonds fell across the curve with the longer-dated bonds such as the 2042 U076747385= and 2047 RU000A0JXU14= issues losing some 1.6 cents, according to Refinitiv data. comments from Biden were a lot more aggressive than what markets were anticipating," said Simon Harvey, FX analyst at Monex Europe, adding that the market now expects broad-based and more targeted economic sanctions towards domestic markets than previously imposed.

The latest threat comes after the United States and European Union imposed sanctions, albeit limited, over the alleged poisoning of Kremlin critic Alexei Navalny.

"Our structural view on (the) rouble is positive, we expect the CBR to hike and see stable economic fundamentals, but these periods of political risk pose a short term hurdle to our view, especially depending on how extensive and prolonged are they going to be and how much the relationship between the two countries suffer."

In broader emerging markets, the focus was on whether the U.S. Federal Reserve will signal policy tightening earlier than anticipated. MSCI's index of EM currencies .MIEM00000CUS was down 0.2%, while the stocks counterpart .MSCIEF slipped 0.6%, both down for a third day in four. dollar held steady ahead of the Fed decision due at 2 p.m. ET. Eyes will be on the reaction of U.S. Treasury yields which hit new 13-month highs running up to the decision. FRX/ US/

Brazil's real BRBY BRL= extended losses to a fourth straight session, down 0.7%. Brazil's central bank is expected to hike interest rates for the first time in six years as inflation surges. The government on Wednesday sharply raised its inflation outlook for this year to 4.4% from 3.2%. less than a 50 basis points rate hike ... would probably be seen as a disappointment by the market, putting pressure on (real)," said Commerzbank (DE: CBKG ) FX and EM analyst Melanie Fischinger.

The real is among the worst performing EM currencies year-to-date, down 8%, thanks to worries about fiscal spending, political interference and rising inflation. Key Latin American stock indexes and currencies at 1328 GMT:

Stock indexes

Latest Daily %

change MSCI Emerging Markets

1340.51

-0.63 .MSCIEF

MSCI LatAm

2283.10

-1.2 .MILA00000PUS

Brazil Bovespa

113567.36

-0.4 .BVSP

Mexico IPC

- .MXX

Chile IPSA

4887.45

-0.36 .SPIPSA

Argentina MerVal

- .MERV

Colombia COLCAP

- .COLCAP

Currencies

Latest Daily %

change Brazil real

5.6567

-0.73 BRBY

Mexico peso

20.7334

-0.54 MXN=D2

Chile peso

732.9

-0.82 CLP=CL

Colombia peso COP=

3575.73

-0.50

Peru sol

3.7008

-0.03 PEN=PE

Argentina peso

91.2000

-0.07 (interbank)

ARS=RASL

For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX

For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB