Business News 15.9.2016 10:56 am

Rand weaker as risk appetite wanes

Benchmark government bonds adds 1 basis point.

South Africa’s rand was slightly weaker against the dollar early on Thursday amid a broader risk-averse mood as with investors awaited the US Federal Reserve policy meeting next week.

At 0643 GMT, the rand was trading at 14.3600 per dollar, 0.26% weaker from its New York close on Wednesday.

While expectations over a Fed rate hike at next week’s meeting have faded, investors are bracing for tightening before year-end.

The South African Reserve Bank also announces its interest rate decision next week.

A tumble in crude oil prices also soured broader risk sentiment.

In fixed income, the yield for the benchmark instrument due in 2026 added 1 basis point to 8.675%.

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