#RandReport: Rand weakens ahead of US Fed meeting; stocks up

The rand weakened against the dollar on Tuesday.

Picture: EWN

JOHANNESBURG - South Africa's rand weakened against the dollar on Tuesday as appetite for riskier but high yielding assets waned in cautious trade ahead of the US Federal Reserv e's interest rate decision on Wednesday.

Stocks rose to an eight-week high buoyed by stronger prices for platinum and gold, lifting resource stocks.

At 1522 GMT, the rand traded at 14.4050 versus the dollar, 0.31 percent weaker from its New York close on Monday.

Higher US interest rate expectations subdue investors' appetite for emerging markets assets, which offer higher returns but carry more risk.

'The market is a bit uncertain of what's going to happen at the FOMC (Federal Open Market Committee) meeting tomorrow and this is generating some volatility on emerging markets," ETM Analytics market analyst Jana van Deventer said.

He adds,"We could see some more rand weakening into tomorrow evening's rate decision given that market players are expecting the bank to portray a slightly more hawkish stance than what we saw at previous meetings."

South Africa's rand weakened against the dollar on Tuesday as appetite for riskier but high yielding assets waned in cautious trade ahead of the US Federal Reserve's interest rate decision on Wednesday.

Stocks rose to an eight-week high buoyed by stronger prices for platinum and gold, lifting resource stocks.

At 1522 GMT, the rand traded at 14.4050 versus the dollar, 0.31 percent weaker from its New York close on Monday.

Higher US interest rate expectations subdue investors' appetite for emerging markets assets, which offer higher returns but carry more risk.

"The market is a bit uncertain of what's going to happen at the Federal Open Market Committee meeting tomorrow and this is generating some volatility on emerging markets," ETM Analytics market analyst Jana van Deventer said.

"We could see some more rand weakening into tomorrow evening's rate decision given that market players are expecting the bank to portray a slightly more hawkish stance than what we saw at previous meetings."