The South African rand weakened against a stronger dollar on Tuesday as investors awaited the Federal Reserve’s interest rate decision.
At 08:20 GMT, the rand was trading at 17.93 per dollar, about 0.4% lower than its previous close.
The dollar index was up by approximately 0.2% against a basket of currencies.
Markets are anticipating a 25 basis point rate cut when the Fed announces its decision on Wednesday, but attention will also be on the central bank’s stance on rates for the year ahead.
“A cautious tone is likely to support the USD and put pressure on emerging market currencies, including the ZAR,” said Andre Cilliers, Currency Strategist at TreasuryONE.
On the stock market, the Top-40 index was down by around 0.9%.
South Africa’s 2030 government bond was slightly weaker, with the yield rising by 1 basis point to 8.93%.
