South Africa’s rand steady, stocks set to open flat

JOHANNESBURG (Reuters) – South Africa’s rand steadied against the dollar on Wednesday as, in the absence of domestic data, investors eyed the U.S. Federal Reserve’s policy statement.

By 0647 GMT, the rand traded at 13.0775 per dollar, barely changed from its overnight close of 13.0750.

Local market players will scour Fed policy statements as higher U.S. interest rate expectations subdue investors’ appetite for emerging markets assets, which offer higher returns but carry more risk.

The rand has this year benefited from carry-trade opportunities in emerging markets but domestic political risks have limited gains.

Stocks were set to open flat at 0700 GMT, with the JSE securities exchange’s Top-40 futures index unchanged.

In fixed income, the yield for the benchmark government bond due in 2026 rose 3 basis points to 8.59 percent.