The South African (SA) Rand was subdued in early trade on Wednesday, tracking other emerging market currencies as investors awaited the ​United States (US) Federal Reserve’s policy decision and comments from Fed Chairman ‌Kevin Warsh for clues on inflation and interest rate outlooks.

The Rand traded at 16.7050 against the Dollar , a whisker away from Tuesday’s close.

Market expectations indicate a 68% ⁠chance that the central bank will hold rates steady and ​a 32% probability of a 25 basis-point hike, according to the FedWatch ​tool. Markets are pricing in a 77% chance of an increase in September.

Like other risk-sensitive currencies, the rand often takes its cues from global factors, particularly US ​monetary policy, alongside domestic economic data.

SA Reserve Bank data on ​Wednesday showed M3 money supply growth slowed to 9.31% in June from 9.59% ‌in ⁠May, while private-sector credit growth eased to 7.80% from 8.57% and undershot the 8.35% forecast in a Reuters poll.

Investors were also monitoring renewed tensions in the Middle East after the US and Saudi Arabia launched strikes ​against Iran-backed groups ​in Iraq, pushing ⁠oil prices higher.

On the Johannesburg Stock Exchange, the Top 40 index was up 1% in early trade, led ​by mining stocks.

SA miner Valterra Platinum’s half-year profit soared ​by ⁠more than 1,600% on the back of stronger prices of platinum group metals and strong increases in output and sales volumes.

Valterra Platinum was the ⁠top ​performer on both the all-share and Top 40 ​indexes, rising more than 7%.

SA’s benchmark 2035 government bond weakened, with the yield rising ​3 basis points to 8.53%.

–Reuters–