Rand on back foot after Fed rate signals

The rand was on the back foot in early trade on Thursday, after the US Federal Reserve projected higher interest rates for a longer period.

At 08:30, the rand traded at R17.20 against the dollar.

Fed Chair Jerome Powell said on Wednesday that the central bank will deliver more rate hikes next year even as the economy slips towards a possible recession.

The risk-sensitive rand is highly susceptible to shifts in the outlook for US monetary policy and other major global market drivers.

The dollar was up about 0.2% against a basket of currencies on Thursday.

Later on Thursday, Statistics South Africa will release November producer inflation and third-quarter formal-sector employment figures.

The South African government’s benchmark 2030 bond was slightly stronger in early deals, with the yield falling 1.5 basis points to 10.245%.