Rand slips as Fed hints at December rate hike
The rand retreated on Thursday after the Federal Reserve signalled it may lift interest rates at its next policy meeting, reigniting fears that the move would trigger capital outflows from emerging markets.
At 08:45 the rand slipped 0.11% to R13.7300/$, having fallen as far 13.8025 as most emerging currencies fell on revived bets of a US rate hike by year end.
Yields on government bonds rose, with the benchmark paper due in 2026 adding 8.5 basis points to 8.395% after rallying to a one-week low in the previous session.
On the local bourse, the benchmark JSE Top-40 index opened a touch lower, led by gold mining companies as bets on possible US rate hike weighed on the price of the yellow metal.
The US Fed kept interest rates unchanged on Wednesday but hinted strongly at a December hike, lifting the dollar to a two-and-a-half-month high against a basket of currencies.
Offshore risk would come from US growth data for Q3 later in the session. Traders expected the figures to show momentum in the world's number one economy, bolstering the case for a December rate hike by the Fed.
Locally, September credit and money supply data showed demand slowing more than expected, further signs of subdued economic activity in Africa's most advanced economy.
At 08:45 the rand slipped 0.11% to R13.7300/$, having fallen as far 13.8025 as most emerging currencies fell on revived bets of a US rate hike by year end.
Yields on government bonds rose, with the benchmark paper due in 2026 adding 8.5 basis points to 8.395% after rallying to a one-week low in the previous session.
On the local bourse, the benchmark JSE Top-40 index opened a touch lower, led by gold mining companies as bets on possible US rate hike weighed on the price of the yellow metal.
The US Fed kept interest rates unchanged on Wednesday but hinted strongly at a December hike, lifting the dollar to a two-and-a-half-month high against a basket of currencies.
Offshore risk would come from US growth data for Q3 later in the session. Traders expected the figures to show momentum in the world's number one economy, bolstering the case for a December rate hike by the Fed.
Locally, September credit and money supply data showed demand slowing more than expected, further signs of subdued economic activity in Africa's most advanced economy.
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