JOHANNESBURG (Reuters) -South African assets recouped the previous day’s losses on Thursday ahead of a Federal Reserve interest rate announcement as the dollar gave back some of its gains linked to Donald Trump’s U.S. election win.
At 1527 GMT, the rand traded at 17.28 against the dollar, about 2.1% stronger than its previous close. The local currency had fallen about 1.5% on Wednesday.
The dollar cooled from the four-month high hit on Wednesday and was last down about 0.8% against a basket of currencies.
Trump recaptured the White House four years after leaving office, spurring so-called “Trump trades” on Wednesday as financial markets expect his policies to bring economic growth in the short term but also potentially inflationary pressures.
On the Johannesburg stock market, the blue-chip Top-40 index closed about 0.8% higher, recovering about half its losses from Wednesday.
The benchmark 2030 government bond was also stronger, with the yield down 20.5 basis points to 9.195%.
The Fed is expected to reduce interest rates by 25 basis points later on Thursday, with markets sensitive to any changes in the outlook for interest rates in the world’s biggest economy.
(Reporting by Bhargav Acharya and Tannur Anders; Editing by Christina Fincher and Angus MacSwan)
