Emerging market stocks and currencies slipped on Monday, with a stronger dollar and higher U.S. Treasury yields weighing on demand for risk assets at year-end, though the rouble rose 0.7% against the dollar after a steep slide on Friday.

The rouble had slumped on Friday after the central bank said it would withdraw some support measures for the currency next year, pulling back on steps introduced in November after new U.S. financial sanctions were announced.

Turkey's lira briefly touched a fresh all-time low of 35.3050 to the dollar. Turkey's economic confidence index rose 1.8% month-on-month in December to 98.8 points, still below the 100 level pointing to an optimistic outlook.

Currencies in emerging Europe also slipped against the euro , with Hungary's forint losing 0.6%, giving back some gains made on Friday, and Poland's zloty edging 0.1% lower.

South Africa's rand weakened 0.4% against the dollar.

Elsewhere, trading was thin on the second-to-last trading day of 2024, with most investors adjusting their portfolios for next year and eyeing a more cautious pace of rate cuts from the U.S. Federal Reserve.

"This week is less about rationalising the ‘why’ behind the market moves and more about recognising that the crosscurrents from remaining end-of-year portfolio flows will be the likely driver of price action," said Chris Weston, head of research at Pepperstone.

Gains in the dollar and rising U.S. Treasury yields put emerging market assets on the back foot heading into 2025, as traders expect a slowing pace of Fed interest rate cuts, U.S. president-elect Donald Trump's continued tariff threats and struggles with rising inflation in 2025.

Higher U.S. rates tend to weigh on emerging markets, causing capital outflows, currency weakness, inflation and volatility as returns on riskier investments lose some of their attractiveness.

MSCI's index of global EM stocks was down 0.3% on the day, and set to gain 5.4% for the year, though much of those gains are concentrated in heavily-weighted Asian technology stocks.

A gauge of currencies has lost 0.7% this year after rising 4.8% in 2023.

The lira is one of the worst performing EMEA emerging market currencies this year, down over 19% against the dollar. The forint is the worst performing central European currency, down 3.7% against the euro year-to-date.

(Reporting by Lisa Mattackal in Bengaluru; Editing by William Maclean)