South African rand steady as Fed tames inflation fears

JOHANNESBURG: The South African rand was supported early on Thursday by the US Federal Reserve's positive outlook on economic growth and pledge to keep interest rates near zero.

At 0603 GMT, the rand traded at 14.6650 versus the dollar, around the same level as its previous close after having posted gains overnight.

The Fed said on Wednesday that the US economy was heading for its strongest growth in nearly 40 years, and policymakers vowed to keep interest rates low to help the economic wounds from the COVID-19 pandemic heal.

That drove a new bout of risk-taking in emerging markets such as South Africa.

In the absence of major local data releases on Thursday, the rand is expected to track moves on global markets.

Government bonds were slightly firmer in early deals, with the yield on the benchmark 2030 bond falling 2 basis points to 9.35%.