JOHANNESBURG (Reuters) -The South African rand slipped against a stronger dollar on Thursday as investors awaited Federal Reserve Chair Jerome Powell’s speech for hints on the future interest rate path of the world’s biggest economy.
At 1530 GMT, the rand traded at 18.01 against the dollar, about 1% weaker than its previous close.
The dollar index was last trading up about 0.37% against a basket of currencies.
The Jackson Hole Economic Symposium of global central bankers in Wyoming starts on Thursday, with Powell set to speak on Friday.
“The all-important speech… will give an important idea of how the interest rate cycle in the U.S. will play out and could further impact the local currency,” said Wichard Cilliers, head of market risk at TreasuryONE.
Fed minutes released on Thursday revealed the U.S. was on track for an interest rate cut in September after a “vast majority” of officials said such an action was likely.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in the absence of major local factors.
On the stock market, after hitting record highs earlier in the day, the Top-40 index closed down 0.63%, while the broader all-share ended 0.48% lower.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 9 basis points at 9.12%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Bernadette Baum and Jonathan Oatis)
