Rand steady as investors await Fed meeting

The rand steadied in early trade on Tuesday as investors continued to be cautious ahead of an expected interest rate hike from the US Federal Reserve on Wednesday.

At 0907 GMT, the rand traded at R16.76 per dollar.

The dollar index, which tracks the greenback against six other major currencies, was slightly up at 106.48.

The Fed will conclude a two-day meeting on Wednesday, as markets try to figure out when policymakers may pause efforts to fight soaring inflation amid clouds of an economic slowdown.

In South Africa, figures from the central bank showed a composite business cycle indicator had fallen 0.7% in May. The indicator combines such data as vehicle sales, business confidence and money supply.

In the stock market, the Top-40 index and the broader all-share both rose more than 0.5% in early trade.

The government’s benchmark 2030 bond rose in early deals, with the yield down 3 basis points at 10.490%.