Rand Recovers as U.S Federal Reserve Delivers Few Surprises

Enterprise Television – Rand Recovers as U.S Federal Reserve Delivers Few Surprises

The rand bounded back at early Thursday after the U.S. Federal Reserve delivered few surprises in announcing an interest rate hike.

The rand traded at 13.24 per dollar, 0.4 per cent stronger than its close on Wednesday. Traders get support at 13.40 and again at 13.53 while resistance is expected at 13.15.

In fixed income, the yield for the benchmark government bond due in 2026 was down 5 basis points at 8.985 per cent.

With little on the domestic agenda, traders will be watching the outcome of the European Central Bank’s policy meeting, at which it is expected to signal an end to a massive bond purchase scheme.

The rand ended a four-day losing streak on Wednesday, bouncing off a six-month low.

South African assets have been hurt recently by the disappointing economic growth and an unfavorable external backdrop which has seen global investors pull back from emerging markets.

The Federal Reserve raised interest rates on Wednesday, as widely expected, and dropped a pledge to keep rates low enough to stimulate the economy for some time now.

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