Rand weaker against greenback

Rand weaker against greenbackFed hike expected Expectations are that the Federal Reserve will hike US interest rates. The rand traded a tad weaker against the US dollar yesterday in a market braced for a US Federal Reserve interest-rate hike.

By the start of the day, the rand traded at 13.6550 to the greenback, down 0.37% from its New York close at 13.6050 on Tuesday.

Equally, consumer inflation data is expected to have little impact, but will keep door open for South African Reserve Bank to hike domestic rates in January if it pulls further above 3-6% target band.

The rand is still on track to end the year up more than 13% versus the dollar, which would be its first annual gain since 2010, helped mainly by investors'' search for yield in emerging markets.

Stock futures index edged up 0.28%, pointing to a slightly firmer start for the Johannesburg bourse. Government bonds retreated in early trade, pushing the yield for 10-year debt up 4 basis points to 8.94%.

NAMPA/REUTERS