JOHANNESBURG (Reuters) – The South African rand gained on Tuesday as markets waited on the outcome of a U.S. Federal Reserve meeting on Wednesday which could give hints on its rate-cut timeline.
At 1526 GMT, the rand traded at 18.35 against the dollar, about 0.5% stronger than its previous close, after tumbling against a stronger greenback on Monday.
Investors will focus on the Fed on Wednesday for insights into the future interest rate path in the world’s biggest economy. The Fed is expected to leave rates unchanged, but markets are betting on a cut at its September meeting.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy in addition to domestic factors.
South Africa’s National Treasury data earlier in the day showed the country recorded a budget surplus of 38.55 billion rand ($2.10 billion) in June.
On the Johannesburg Stock Exchange, the Top-40 index closed 0.3% higher.
South Africa’s benchmark 2030 government bond was flat, with the yield at 9.505%.
($1 = 18.3529 rand)
(Reporting by Tannur Anders; Additional reporting by Bhargav Acharya; Editing by Kirsten Donovan and David Holmes)
