Rand flat in cautious trade ahead of Fed

folarin okunola

July 27, 2016 4:37 PM

At 0645 GMT the rand had inched up 0.25 percent to 14.3255, little changed from New York close at 14.3620.

A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

South Africa's rand was largely unchanged on Wednesday ahead of a central bank decision on interest rates in the United States that investors will watch closely for hints on the future pace of policy easing by the Federal Reserve.

* At 0645 GMT the rand had inched up 0.25 percent to 14.3255, little changed from New York close at 14.3620.

* U.S. Federal Reserve set to keep interest rates unchanged, pushing back any increases until September or December, but hawkish tone on economy could pressure rand.

* Technical analysis suggests currency slightly overbought, seen edging back to 14.4500 support.

* Blue chip Top-40 futures index up 0.46 percent, indicating bourse will open firmer at 0700 GMT.

* Government bonds extend rally, yield on paper maturing in 2026 sheds 6 basis points to 8.69 percent.

folarin okunola

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