The rand settled into a narrow trading range on Tuesday morning, reflecting a tentative mood on global markets just one day before the US Federal Reserve delivers its decision on interest rates. "The old market saying is that you can’t fight the Fed. With this in mind, markets have mostly gone into hibernation," Rand Merchant Bank currency strategist John Cairns said in a note. As one of the most liquid emerging-market currencies, the rand is susceptible to global market swings. Markets expect the world’s most influential central bank to increase rates on Wednesday. However, investors will pay close attention to Fed chair Janet Yellen’s guidance on future interest rates. Market participants expect at least three in 2017. Kaon Capital CE Luke Alers said the rand could strengthen further if the Fed pulled the trigger on rates, interpreting it as a signal that the US economy was "firing on all cylinders". The stronger rand helps to rein in inflation, which the Reserve Bank expects to f...
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