Us federal reserve
Rand flat ahead Fed decision
The Fed is expected to provide reassurance of endless stimulus for the U.S. economy in a statement at 1800 GMT but no major policy changes are expected.
The Federal Reserve concludes its latest policy meeting later in the day, and while it is not expected to announce any new measures, there are hopes it will offer new guarantees that it will keep the stimulus in place for an extended period.
Investors are waiting to see if the US Fed reinforces an more upbeat tone that has followed moves in the United States and Europe to reopen economies.
At 0640 GMT, the rand traded at 16.7740 per dollar, 0.56% weaker than its previous close, and retreating from a near 12-week high of 16.6400 touched earlier in the session.
A majority of economists expect a US recession in the next two years, but have pushed back the onset amid Federal Reserve actions, according to a survey released Monday.
At 1505 GMT the rand was 1.45% weaker at 14.5475 per dollar, its weakest since June 18.
The market’s main focus for the day will be on President Cyril Ramaphosa’s State of the Nation address at 1700 GMT.
The US Federal Reserve on Wednesday held interest rates steady and signalled little appetite to adjust them any time soon.
Caution prevailed among investors as Eskom said it would continue implementing power cuts on a rotational basis as it struggles with generating capacity shortages.
The latest Twitter outburst renewed the president's rock throwing at the central bank, which he accuses of undermining his economic agenda of tax cuts.
The Federal Reserve held interest rates steady but struck an expectedly hawkish tone that fed into some dollar gains and put emerging market currencies under pressure.
Stocks weakened for a third session, in line with emerging markets, which were hampered by Chinese stocks tumbling to four-year lows.
The dollar was boosted by traders responding positively to Federal Reserve Chairman Jerome Powell’s assurance of steady US growth.
The Federal Reserve has raised rates seven times since late 2015 on the back of the economy’s continuing expansion and solid job growth
The rand continues to trade at its best levels in 20 months against the US dollar.
The rand fell amid risk-off sentiment ahead of the Fed decision, with analysts expecting it to raise interest rates.
The rand weakened against the dollar on Tuesday.
Consumer spending surged 1% in April as households bought automobiles & other goods and services.
Investors have all but ruled out a rate hike for the rest of the year.