South African rand gains ahead of Fed minutes; stocks edge up

A street money changer counts South African Rands in Harare, Zimbabwe, File. REUTERS/Philimon Bulawayo

South Africa’s rand strengthened on Wednesday ahead of minutes from the U.S. Federal Reserve’s December policy meeting that could give clues on its interest rate tightening path.

At 1513 GMT, the rand traded at 16.8750 against the dollar, 0.81% stronger than its previous close.

Minutes from the Fed’s December meeting are due to be released later in the day.

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Local investors will be looking at S&P Global South Africa PMI survey for December due on Thursday on how the economy fared in the last month.

However, with no other major domestic economic events scheduled this week, the risk-sensitive rand is set to take cues from global drivers.

On the Johannesburg stock market, the Top-40 (.JTOPI) index ended 0.25% higher while the broader all-share (.JALSH) index rose 0.18%.

The government’s benchmark 2030 bond was stronger in afternoon deals, with the yield down 6.5 basis points to 10.010%.