Rand was at 14.6300 versus the greenback, as of 0505 GMT, 0.01% lower compared with previous session’s close.

Finance Minister Tito Mboweni, who will deliver his medium-term budget policy statement at 1200 GMT on Wednesday, is expected to reveal a wider government deficit and higher debt.

Globally, expectations of further US monetary policy loosening also emboldened investors, with a reduction of 0.25 percentage points at the conclusion of the Fed’s two-day meeting later on Wednesday almost seen as a done deal.

However, that sentiment was countered by worries that a Sino-US first-stage trade deal could be delayed, prompting a slip in shares in Asian markets. “Brace yourselves, we are in for a volatile day,” Peregrine Treasury Solutions said in a note, adding when it comes to the Rand most of the attention will be on Mboweni’s speech.

Government bonds were slightly weaker, with the yield on benchmark 2026 instrument inching up 1 basis points to 8.21%.

--Reuters--