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South African rand weakens ahead of Fed decision


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South African rand weakens ahead of Fed decision

South African rand weakens ahead of Fed decision
Photo by Reuters
Photo by Reuters

17th December 2024

By: Reuters

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South Africa's rand slipped against a stronger dollar on Tuesday, as investors turn their attention to the Federal Reserve's interest rate decision.

At 0820 GMT, the rand traded at 17.93 against the greenback, about 0.4% weaker than its previous close. 

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The dollar index was last trading up about 0.2% against a basket of currencies.

The Fed will announce its interest rate decision on Wednesday, with markets expecting a 25 basis point cut, but the focus will also be on the central bank's tone on rates for the year ahead.

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"A conservative tone will likely support the USD and pressure EM (emerging market) currencies, including ZAR," said Andre Cilliers, Currency Strategist at TreasuryONE. 

On the stock market, the Top-40 index was down about 0.9%.

South Africa's benchmark 2030 government bond was slightly weaker, with the yield up 1 basis point at 8.93%.
  

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