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JOHANNESBURG. – THE rand was trending weaker against the dollar yesterday morning, following the US Federal Reserve’s decision to hike rates for the first time since 2006. In a widely expected move, the US central bank announced a quarter-percentage-point increase in its benchmark federal-funds rate on Wednesday, Dow Jones Newswires reported. The Fed’s decision was unanimous and Chairwoman Janet Yellen emphasised that the central bank would raise rates gradually.

“It’s been a long time since the Federal Reserve has raised interest rates and we think it’s prudent to be able to watch what the impact is on financial conditions and spending in the economy, and moving in a timely fashion enables us to do this,” Ms Yellen said.

At 8.20am the rand was at 15,0187 against the dollar from a previous close of 14,9439. Against the euro the rand was at 16,3033 from 16,3062 previously. The rand was at 22,4526 against the pound from 22,4119. The euro was at $1,0855 from a previous close of $1,0912.

Momentum Asset Management economist Sanisha Packirisamy said SA was among those economies that benefited from a prolonged period of ultra-accommodative monetary policy in the US. – BDLive.