By Shreyashi Sanyal
June 26 (Reuters) - Emerging market stocks and currencies were set on Friday to end the week with modest gains, as concerns about a surge in coronavirus cases continued to weigh on hopes of a swift economic recovery.
Coronavirus cases continued to rise across the United States by at least 39,818 on Thursday, the largest one-day increase of the pandemic.
Analysts say market participants have assumed a second coronavirus wave and renewed lockdowns will have limited impact because, if curbs resume, it could heighten the possibility of more stimulus for economies.
Still, caution prevailed in the markets as the safe haven U.S. dollar and gold prices rose. FRX/ GOL/
"No clear picture is emerging on the FX markets at the close of this week. As the euphoria that dominated the beginning of the week seems to have evaporated and the dollar is principally more in demand," analysts at Commerzbank (DE: CBKG ) wrote in a client note.
The Turkish lira TRY= was flat after rallying in the previous session following the central bank's unexpected decision to halt a nearly year-long easing cycle on Thursday, citing upward pressure on inflation through the coronavirus pandemic. The lira has fallen 13% this year.
In Hungary, Deputy Governor Barnabas Virag said the Hungarian central bank may cut its base rate by another 15 basis points in July, but that was as far as it would go, adding that market pricing of further aggressive rate easing was exaggerated. Hungarian forint HUF= weakened 0.2% against the euro, while other central and eastern European counterparts including currencies in the Czech Republic CZK= and Poland also dipped.
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 CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
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