The rand was a tad weaker in early trade on Wednesday‚ with the key focus of attention today being the US Fed policy statement.
“I don’t think we are going to see new positions being taken until the (US Federal Reserve) statement. The Fed will probably drop hints on what might be done to boost economic growth. Anything short of expectations will trigger risk-off trade‚” said Lynden Reaboow‚ FX sales trader at PSG Prime.
At 09:06 local time the rand was bid at R8.2501 to the dollar from Tuesday’s close of 8.2599. It was bid at R10.1520 to the euro from its previous close of R10.1569 and at R12.9220 against sterling from R12.9397 before.
The euro was bid at US$1.2310 from Monday’s close of $1.2297 and Friday’s close of $1.2308.
RMB said in a note: “The rand has been a sharp underperformer‚ bucking not only our expectation that it would go stronger but also the decent tone in our compatriot currencies. It's not clear why‚ but whatever the cause‚ it is likely to get drawn into the global rhythm today as event stress starts to increase.” - I-Net Bridge