At 5pm, the rand bid at R13.9712 to the dollar, 6 cents softer than at the same time on Tuesday, inching closer to the R14 mark that has in recent times determined the momentum of the currency either direction.
The SA Reserve Bank meets today. According to a Reuters poll last week, it is set to cut interest rates by 25 basis points, while forward rate markets yesterday showed investors pricing in a close to 40percent probability of a cut by that margin.
While a cut might reduce the rand’s carry-trade advantage, the impact on the currency could be limited by expectations the US Federal Reserve will also cut rates, on July31.
Government bonds were flat, with the yield on the benchmark 2026 instrument was at 8.025percent.