South Africa’s rand saw a decline on Thursday morning as financial markets awaited the South African Reserve Bank’s (SARB) decision on interest rates. At 07:15 GMT, the rand weakened to 18.1750 per dollar, marking a 0.3% decline from its previous value. The weakening of the rand came alongside the U.S. dollar’s 0.2% rise against a basket of currencies, following the Federal Reserve’s announcement to maintain current interest rates.
The rand’s pressure persists amid a national budget stalemate, tense U.S. relations, and tariff uncertainties initiated by former President Donald Trump. Investors are closely monitoring the SARB’s interest rate announcement, seeking insights into the economic prospects of South Africa, the region’s most industrialized nation.
Economists surveyed by Reuters largely predict the central bank will maintain rates, given substantial economic challenges. However, some market analysts suggest a rate cut could bolster the rand and economic sentiment, especially as recent inflation figures were lower than anticipated.
In other market movements, the Top-40 Index experienced a slight dip of 0.2% in early trading, while the yield on South Africa’s 2030 government bond showed minor improvement, dropping by 1 basis point to 9.075%.
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