The South African rand rises ahead of the US rate announcement

The South African rand slightly strengthened early on Wednesday in anticipation of the U.S. Federal Reserve’s interest rate announcement.

Around 0.1% stronger than its previous finish, the rand was trading at 18.66 against the US dollar at 0706 GMT.

Last time, the dollar lost almost 0.1% of its value relative to a basket of currencies.

Today marks the end of the Fed’s two-day meeting, during which it is very certain to maintain current interest rates. In his call for lower interest rates, U.S. President Donald Trump has claimed to have a better understanding of monetary policy than those in charge of determining it.

Following White House spokesperson Karoline Leavitt’s Tuesday statement to reporters that Trump still intends to slap tariffs on Canada and Mexico this week, investors are also on the lookout for tariff threats.

The first interest rate announcement for 2025 from the South African Reserve Bank (SARB) will be the focus of attention for local investors on Thursday.

Reuters surveyed economists, who predict a 25 basis point reduction to 7.50%.
A fresh tab on the stock market showed a 0.4% increase in the Top-40 (.JTOPI).

Early transactions saw a firmer benchmark 2030 government bond from South Africa, with the yield falling 4.5 basis points to 8.99%.