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Johannesburg. — The rand was firmer at midday yesterday as the market awaits the US Federal Reserve’s rate decision today. Markets will look more closely into the tone of the Fed statement for future guidance on rate hikes rather than the decision on rates, which are expected to remain unchanged this week. At 11.30am the rand was at 12,5506 to the dollar from a previous close of 12,6218. The rand was at 13,8863 against the euro from a previous close of 13,9953 and at 19,5817 to the British pound from 19,6328 previously.

The euro was at $1,1065 from its previous close of $1,1089. Investec economist Annabel Bishop said the rand is set to regain some ground from weaker levels, although the outcome is likely to be weaker if the Reserve Bank’s tone remains hawkish.

“We forecast an average exchange rate of 12,35/$ for the third quarter.”

Bishop said global risk aversion will be a key influencer, as will the pace and timing of US interest rate hikes.

Global risk aversion remains strong on a potential Grexit, slowing Chinese growth, the correction in China’s stock markets and weaker emerging market sentiment, she said. — BDlive.