JOHANNESBURG (Reuters) -South Africa’s rand slipped on Thursday, a day after the Federal Reserve struck a hawkish tone on interest rate cuts in the coming year.
At 1510 GMT, the rand traded at 18.37 against the dollar, about 0.3% weaker than its previous close.
The U.S. central bank cut interest rates on Wednesday, but Fed Chair Jerome Powell said further reductions in borrowing costs hinged on more progress in lowering high inflation, sending the dollar to a near two-year high.
Like most emerging market currencies, the rand took a hit, ending Wednesday more than 1% lower. It made a slight recovery in the morning session before weakening again.
On the stock market, the Top-40 index closed about 1.4% lower.
South Africa’s benchmark 2030 government bond also slipped, with the yield up 9 basis points to 9.115%.
(Reporting by Bhargav AcharyaEditing by Tomasz Janowski)
