<strong>Rand strengthens ahead of Fed decision</strong>
The rand strengthened in early trade on Wednesday, as investors awaited the US Federal Reserve's policy decision later in the day, which could provide clues about future interest rate hikes. The rand was trading at R18.15 per dollar in early trade. The dollar index, which compares the greenback to six rival currencies, was last down
<strong>Rand strengthens ahead of Fed decision</strong>
The rand strengthened in early trade on Wednesday, as investors awaited the US Federal Reserve’s policy decision later in the day, which could provide clues about future interest rate hikes.
The rand was trading at R18.15 per dollar in early trade.
The dollar index, which compares the greenback to six rival currencies, was last down 0.12% at 111.35.
Markets widely anticipate the Fed raising its benchmark overnight interest rate by 75 basis points, but the focus will be on the Fed’s inflation commentary and any hints on the pace of future rate hikes.
“The Fed will hike by a further 75bp today and will signal more to come, but probably at a slower pace,” ETM Analytics said in a research note.
The yield on the South African government’s benchmark 2030 bond fell 4 basis points to 10.770% in early trades.
