South Africa's rand falls as investors eye Fed meet
JOHANNESBURG, July 27 (Reuters) - South Africa's rand weakened in early trade on Tuesday, as caution ahead of a U.S. Federal Reserve policy meeting kept global markets in check.
At 0625 GMT, the rand ZAR=D3 traded at 14.8500 against the dollar, 0.41% weaker than its previous close.
"The markets are likely to remain somewhat cautious ahead of the (Fed meeting)," Nedbank analysts wrote in a client note.
Investors are focused on this week's Fed meeting for clues about when the U.S. central bank might rein in its easy monetary policies. The two-day meeting will start on Tuesday and a policy statement will be issued at 1800 GMT on Wednesday.
Riskier currencies, such as the rand, thrive on U.S. interest rates remaining low because they benefit from the interest rate differential that increases their appeal for carry trade.
In fixed income, the yield on the benchmark 2030 government bond ZAR2030= added a single basis point to 8.84% in early deals.
(Reporting by Olivia Kumwenda-Mtambo Editing by Peter Graff)
((Olivia.Kumwenda@thomsonreuters.com; +27 10 346 1084;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.