Rand firms ahead of Fed decision on rates
The rand is range bound ahead of the US Fed's monetary policy announcement at 8pm local time, while a US oil report is also being watched
The rand was firmer against major global currencies on Wednesday afternoon, finding some support from an easing oil price, although market focus remains fixed on the US Federal Reserve's interest-rate decision due on Wednesday night. The market has fully priced in a 25 basis-points interest-rate hike from the Fed, although the tone of the message and the bank's forward guidance will be closely scrutinised. "With the US economy galloping along quite nicely, it is difficult to envision a dovish lean," Oanda analyst Stephen Innes said. Few local factors were giving the market direction, with the next major data release this week being that of producer inflation, due on Thursday. Inflation is expected to have moderated in August from July, with analysts of the opinion that the fuel price reprieve in the former was a factor. Some support for the rand on Wednesday came from an easing oil price, after US inventory data surprised to the upside. An official US Energy Information Agency repor...
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