Rand firms ahead of Fed rate decision

The rand firmed in early trade on Wednesday, ahead of a closely watched interest rate hike decision by the US Federal Reserve due later in the day.

At 0910 GMT, the traded at R16.89 against the dollar, 0.35% stronger than its previous close.

The dollar index, which tracks the greenback against six other major currencies, was slightly down at 107.04.

Traders are awaiting the Fed policy announcement at 1800 GMT, with the focus also on the news conference following the decision for any hint on whether policymakers’ resolve to hike further is waning as economic growth slows.

On the stock market, the Top-40 index and the broader all-share were both marginally down in early trade.

The government’s benchmark 2030 bond was down in early deals, with the yield up 7.5 basis points to 10.745%.