JOHANNESBURG: The South African rand fell against a stronger dollar on Tuesday, as investors turn their attention to the Federal Reserve’s interest rate decision.
At 0820 GMT, the rand was trading at 17.93 against the dollar, about 0.4% weaker than its previous close.
The dollar index was last trading up about 0.2% against a basket of currencies.
South African rand weakens at start of data-filled day
The Federal Reserve will announce its interest rate decision on Wednesday, with markets expecting a 25 basis point cut, but attention will also be on the central bank’s tone on rates for next year.
“A conservative tone will likely support the USD and put pressure on emerging market currencies, including the ZAR,” said Andre Cilliers, currency strategist at TreasuryONE.
In the stock market, the Top-40 index was down about 0.9%.
South Africa’s benchmark 2030 government bond was slightly weaker, yielding 1 basis point to 8.93%.
