By Shashwat Chauhan

Sept 5 (Reuters) -Most emerging market currencies edged up against a wavering dollar on Thursday as bets on bigger interest rate cuts by the Federal Reserve grew, with focus on more U.S. data due later in the day.

MSCI's index for emerging market (EM) currencies .MIEM00000CUS gained 0.2%, as heavyweight China's yuan CNY=CFXS rose 0.2% against the dollar in onshore trading. The offshore yuan CNH= was also up by the same level.

The dollar struggled for direction after data on Wednesday showed U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labour market was losing steam, while a Fed survey showed U.S. economic activity expanded more slowly from the middle of July through late August.

"Market is jittery around the employment picture in the US and yesterday's JOLTS data and the Beige book report did not paint a positive picture," Mohit Kumar, chief economist strategist, Europe, Jefferies said in a note.

Traders added to bets that Fed could opt for a bigger rate cut when it meets later this month, with 43% expecting a 50-basis-point one compared to 38% a day prior, as per the CME FedWatch Tool.

Focus would remain on a reading on the U.S. services industry and jobless claims data later in the day, but the week's key concern will be Friday's hotly anticipated August report for nonfarm payrolls.

A Reuters poll found that most emerging market currencies will see no further gains for the rest of this year despite an expected series of interest rate cuts from the Fed.

Most currencies in Central Eastern Europe (CEE) traded in a tight range, with Poland's zloty EURPLN=, Hungary's forint EURHUF= and the Czech crown EURCZK= all broadly flat against the euro.

South Africa's rand ZAR=D3 appreciated 0.6% against the dollar, while Russia's rouble RUB= shed 2.5%.

A gauge for EM stocks .MSCIEF added 0.3% after falling more than 1.5% in the last session as bourses in China .CSI300 and Taiwan .TWII closed higher.

Emerging markets-focused investor Ashmore ASHM.L said core markets were demonstrating resilience to shocks, with growth gathering momentum into 2025 as it reported annual pretax profit in line with expectations.

Meanwhile, Chinese President Xi Jinping pledged to step up China's support to African nations with funding of nearly $51 billion at the Forum on China-Africa Cooperation (FOCAC) Summit

Separately, Mexico's peso MXN= briefly slipped to 20 per dollar after the country's lower house of Congress approved an overhaul of the country's judiciary early on Wednesday, in a vote cheered by the ruling party but seen as a dangerous experiment by the opposition.

Malaysia's ringgit MYR= appreciated 0.4% after the country's central bank kept its benchmark interest rate unchanged at 3%, in line with market expectations.

India's rupee INR=IN slipped to 83.985, a record low against the dollar.

HIGHLIGHTS:

** China sees room to lower reserve requirement ratio, PBOC official says

** Czech crown set to lead CEE currencies, forint held back - Reuters poll

Reporting by Shashwat Chauhan in Bengaluru

 
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For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB