JOHANNESBURG (Reuters) -South Africa’s rand weakened against the dollar on Wednesday, as investors awaited a Federal Reserve policy decision amid speculation it might signal a slowdown in the pace of future rate hikes.
At 1531 GMT, the risk-sensitive rand traded at 18.2200 against the dollar, 0.11% weaker than its previous close.
Markets widely expect the Fed to raise its benchmark overnight interest rate by 75 basis points but the focus will be on its commentary on inflation and any clues 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.
On the Johannesburg Stock Exchange, the Top-40 index closed 0.47% lower, while the broader all-share index ended down 0.43%.
The South African government’s benchmark 2030 bond was stronger in afternoon deals, with the yield down 9 basis points to 10.720%.
(Reporting by Bhargav Acharya and Anait Miridzhanian; Editing by Savio D’Souza and Deepa Babington)
