Johannesburg – The South African currency benefited from a retreating greenback as a lack of local releases turned the attention to the two-day FOMC meeting which will conclude on Wednesday according to NKC Research.
The FOMC is currently in the middle of a blackout period and is expected to reaffirm its very dovish forward guidance, and could be ready to link it to an inflation or unemployment target. Fed is believed to be leaning towards stating it won’t lift interest rates off the effective lower bound (ELB) until inflation is sustainably at or above the 2% Y-O-Y target, which could be until 2024.
At the close of local trade, the rand quoted 1.21% stronger at R16.04/$, after trading in range of R16.40/$- R16.71/$. The rand stepped onto the back foot on Tuesday morning. Expected range today R16.30/$- R16.60/$.