JOHANNESBURG (Reuters) – South Africa’s rand was steady on Wednesday as markets await the Federal Reserve’s interest rate decision and look for clues on its direction for next year.
At 1500 GMT, the risk-sensitive rand traded at 18.0575 against the dollar, near its previous close.
The Fed is widely expected to deliver a 25-basis-point cut later on Wednesday but much of the focus will be on its tone on the interest rate trajectory for 2025.
“Markets anticipate a hawkish tone, emphasizing inflation risks and cautious rate trajectories,” said Andre Cilliers, currency strategist at TreasuryONE.
On the stock market, the Top-40 index closed about 0.2% lower.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 3 basis points to 9.025%.
(Reporting by Bhargav Acharya; Editing by Peter Graff and Jan Harvey)
