South Africa’s rand recovered some losses on Thursday, a day after the Federal Reserve struck a hawkish tone on interest rate cuts in the coming year. At 0826 GMT, the rand traded at 18.275 against the dollar, about 0.3% stronger than its previous close.
The U.S. central bank cut interest rates on Wednesday, but Fed Chair Jerome Powell said further reductions in borrowing costs hinged on more progress in lowering high inflation, sending the dollar to a near two-year high.
Like most emerging market currencies, the rand took a hit, ending the day more than 1% lower. On the stock market, the Top-40 index was down about 1.3%.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 11.5 basis points to 9.14%.
