South African rand firms as stable commodities offset Fed tightening signal
JOHANNESBURG: The South African rand strengthened in early trading on Thursday, supported by stable commodity prices after the US Federal Reserve raised interest rates and signalled that further monetary tightening may follow. At 0807 GMT the rand traded at 16.3050 against the dollar , about 0.6% stronger than its previous close. The US dollar was flat against a basket of currencies. South Africa’s key export commodities gained, with gold rising 1.2% to $4,314.64 per ounce and platinum climbing 1.9% to $1,784.42 as investors assessed the Fed’s move. The Fed raised rates by 25 basis points and signalled more hikes, as policymakers warned that inflation could worsen. “The South African Reserve Bank faces a difficult balance. Maintaining credible inflation control could support the ZAR’s yield appeal, while mechanically matching overseas increases would risk adding pressure to already subdued domestic activity,” said ETM Analytics in a note. South Africa’s monetary policy committee is due to meet next week to decide on the country’s interest rate path. On the Johannesburg Stock Exchange, the Top-40 index was up 0.6% in early trade. South Africa’s benchmark 2035 gove
