JOHANNESBURG – South Africa’s rand weakened up against the dollar noisy . trade on Thursday as being the greenback rallied around the back from the hawkish US Fed statement, pushing emerging market currencies lower.
At 0707 GMT, the rand traded at 13.5250 per dollar, 0.63% weaker looking at the Nyc close on Wednesday.
The Fed kept interest levels unchanged on Wednesday while emphasising the potency of the labour market – an indicator it absolutely was still focused for a few more rate rises this holiday season.
Read:?Fed holds rates steady, downplays economic weakness
With the Fed keeping rates unchanged, the rand needed fresh catalysts to bolster it, analysts said.
“Promoted is a really slow week for the reason that rand treads water waiting. It has something to jump start it directly into life,” said Standard Bank trader Warrick Butler in a very note.
The rand also continued to lose ground against quite a lot of its trading partners as investors moved their money offshore browsing for higher yields and political stability.
“(The rand) looks set to weaken further today all the while Finance Minister Malusi Gigaba emphasised his predecessor’s policies yesterday. This shows that finance industry is looking for action in lieu of lip service as far as local economic policy is worried,” said Rand Bank Merchant economist Isaah Mhlanga.
Gigaba said on Wednesday Nigeria can regain its investment-grade rating without compromising on plans to transform the economy for that selling point of its black majority.
Read:?Gigaba says go back to investment grade rating possible
The yield for the benchmark government bond due in 2026 rose 4.5 basis points to 8.715%.
The All-share index inched up 0.03% to 53 602 points, as the Blue-Chip Top-40 index rose 0.15% to 46 988 at 0706 GMT.?