JOHANNESBURG (Reuters) -South Africa’s rand strengthened on Wednesday, ahead of a much-anticipated policy decision by the U.S. Federal Reserve.
At 1535 GMT, the rand traded at 18.19 against the dollar, more than 0.7% stronger than its previous close.
Investors’ focus will be on the Fed later on Wednesday for clues to the future interest rate trajectory of the world’s biggest economy.
The central bank 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 like U.S. monetary policy in addition to local factors.
On the domestic front, South Africa recorded a trade surplus of 24.23 billion rand in June, revenue service figures showed on Wednesday.
On the stock market, the Top-40 index closed over 2% up.
South Africa’s benchmark 2030 government bond firmed, with the yield down 10 basis points to 9.405%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Andrew Heavens and David Gregorio)
