Independent Online

Wednesday, August 17, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

South African rand steady in early trade against dollar

Rand banknotes and coins sit in a cash till inside a store in the Rosebank district of Johannesburg, South Africa, on Wednesday, Aug. 26, 2015. Photographer: Waldo Swiegers, Bloomberg.

Rand banknotes and coins sit in a cash till inside a store in the Rosebank district of Johannesburg, South Africa, on Wednesday, Aug. 26, 2015. Photographer: Waldo Swiegers, Bloomberg.

Published Jul 25, 2022

Share

South Africa's rand steadied in early trade on Monday as investors prepare for a sharp U.S. interest rate rise this week amid signs of a weakening global economy.

At 09:08 am, the rand traded at 16.8400 against the dollar, little changed from its previous close of 16.8375.

Story continues below Advertisement

The rand has held at the 16.8000 level after breaking below the 17.0000 mark last week, losing some steam, Andre Cilliers, currency strategist at TreasuryONE, said in a research note.

"The fact that the level has been holding up so far could suggest that the rand momentum has run out a little bit, and the closer we get to the Fed decision on Wednesday, we expect some volatility," he said.

The U.S. Federal Reserve concludes a two-day meeting on Wednesday and markets are priced for a 75-basis-point rate increase, with about a 9% chance of a 100 bp rise.

On the stock market, the Top-40 and the broader all-share indexes both dipped more than 0.8% in early trade.

The government's benchmark 2030 bond rose in early deals, with the yield down 3 basis points to 10.510%.

Reuters

Story continues below Advertisement

Share