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South African Rand Weakens ahead of Fed Decision

JOHANNESBURG, Dec 17 (Reuters) - South Africa's rand slipped against a stronger dollar on Tuesday, as investors turn their attention to the Federal Reserve's interest rate decision.

At 0820 GMT, the rand traded at 17.93 against the greenback , about 0.4% weaker than its previous close.

The dollar index was last trading up about 0.2% against a basket of currencies.

The Fed will announce its interest rate decision on Wednesday, with markets expecting a 25 basis point cut, but the focus will also be on the central bank's tone on rates for the year ahead.

"A conservative tone will likely support the USD and pressure EM (emerging market) currencies, including ZAR," said Andre Cilliers, Currency Strategist at TreasuryONE.

On the stock market, the Top-40 index was down about 0.9%.

South Africa's benchmark 2030 government bond was slightly weaker, with the yield up 1 basis point at 8.93%.

Reporting by Bhargav Acharya; Editing by Kirsten Donovan

Source: Reuters


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