Home Economy South African rand falls as dollar gains on Fed expectations

South African rand falls as dollar gains on Fed expectations

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At 1605 GMT, the rand traded at 15.1550 against the dollar, roughly 0.4% weaker than its previous close and heading for its fourth consecutive daily fall.

The dollar was up 0.5% against a basket of currencies.

The U.S. currency, seen as a safe haven during times of market stress, has strengthened in recent days as investors have focused on fears of a global economic slowdown, a rise in energy prices and higher U.S. Treasury yields.

Some traders are concerned the Fed will start to withdraw policy support just as global growth slows.

South Africa’s central bank kept its main lending rate unchanged at a record low of 3.5% last week, saying an economic bounce-back from the COVID-19 pandemic was mostly done.

On Thursday, there will be a flurry of domestic economic data releases, including August credit numbers, producer price inflation and trade figures.

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