Market News
South African rand flat; markets focus on Fed rate cut next week - CNBC
Tannur Anders
JOHANNESBURG, Sept 13 (Reuters) – The South African rand was little changed in early trade on Friday, as markets weighed up bets on the size of a rate cut expected in the world’s biggest economy next week.
At 0804 GMT, the rand traded at 17.7550 against the dollar, near its Thursday closing level of 17.7625.
The dollar last traded softer against a basket of peers, as investors remained on tenterhooks ahead of next week’s Federal Reserve meeting.
While markets are certain the Fed will cut rates, uncertainty around whether it will go with a 25-basis-point or 50-basis-point cut remains.
On Friday, the rand will likely track developments in the lead up to the meeting. The risk-sensitive local unit often takes direction from global drivers like U.S. monetary policy in the absence of major local data points.
Next week, local investors will focus on August consumer inflation figures on Sept. 18 and the South African Reserve Bank’s (SARB) interest rate announcement on Sept. 19. Economists polled by Reuters predict the SARB will announce a 25 basis point rate cut.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index was up about 0.3% in early trade.
South Africa’s benchmark 2030 government bond also firmed in early deals, as the yield slipped 3 basis points to 8.97%.
(Reporting by Tannur Anders; Editing by Mrigank Dhaniwala)
