March 19 Reuters Emerging market stocks were set for their worst session in two weeks on Friday, hurt by rising U.S. bond yields and souring SinoU.S. talks, while investors also awaited the Russian central banks monetary policy stance due later in the day.

Russia is expected to stand pat on rates, but prepare markets for an imminent rate increase amid high inflation and lingering geopolitical risks.

This comes after Turkeys central bank hiked rates by 200 basis points to 19 on Thursday, sending the lira up more than 2 in response and putting it back in positive territory for the year.

The lira on Friday extended gains, up 1, while Russias rouble firmed 0.4 ahead of the countrys central bank decision due at 1030 GMT. A recovery in oil prices after a 7 slump also helped the crude exporting nations currency.

The rouble is set for its worst week in two months as a report alleging Russian involvement in the U.S. 2020 election heightened tension between the two nations with Washington expected to impose sanction on Moscow as early as next week.

The sanctions threat and rising U.S. Treasury yields have raised market expectations for a 25 bps hike on Friday, Credit Suisse analyst Alexey Pogorelov said, but added that the firm still expects Russia to wait till next month to tighten its monetary policy.

South Africas rand rose 0.8, and most Asian currencies trimmed losses as the dollar slipped.

An index of EM currencies is on track to break a fourweek losing streak and end…