The South African (SA) Rand was steady in early trade on Wednesday after recovering some losses from the previous two sessions, supported by gold prices returning above the $4.300 per Ounce level.
The Rand traded at 16.26 against the Dollar , little changed from its previous close.
The firmer bullion price has improved sentiment towards the Rand, given the importance of precious-metal exports to the local economy.
Oil prices, which had added pressure to the rand, fell on Wednesday after an unexpectedly large increase in United States (US) crude inventories ended a two-day rally.
“The local currency is currently at 16.23 rand to the Dollar, however, we could still see some short-term volatility ahead of the FOMC later today,” said Andre Cilliers, Currency Strategist at TreasuryONE.
Market participants are looking ahead to the US Federal Reserve’s policy decision, with a rate hike largely priced in.
Domestic investors will focus on July retail sales data. Economists polled by Reuters expect annual growth to rise by 0.9%.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.6% in early trade.
SA’s benchmark 2035 government bond was firmer in early deals, with the yield down 3.5 basis points to 8.775%.
–Reuters–
