Rand, Nam$ await MPC decision

JOHANNESBURG – South Africa’s rand was trading stronger yesterday ahead of an expected interest rate hike today and as traders unwound long US dollar positions in New York overnight.

Dealers said the currency could edge firmer during the session after recent heavy losses that took it to a new 3-1/4 year low of 7,98 to the US$ last week. At 0645 GMT, the rand was at 7,74/US$, in line with its New York close but 0,6 per cent firmer than levels in late Johannesburg trade on Tuesday.Dealers said the currency could shift to 7,65 to the US$ as the market squared positions ahead of today’s central bank decision on interest rates.The South African Reserve Bank is widely expected to announce a half percentage point hike in its key repo rate to 8,5 per cent at the end of its two-day monetary policy committee meeting starting yesterday.Nampa-ReutersAt 0645 GMT, the rand was at 7,74/US$, in line with its New York close but 0,6 per cent firmer than levels in late Johannesburg trade on Tuesday.Dealers said the currency could shift to 7,65 to the US$ as the market squared positions ahead of today’s central bank decision on interest rates.The South African Reserve Bank is widely expected to announce a half percentage point hike in its key repo rate to 8,5 per cent at the end of its two-day monetary policy committee meeting starting yesterday.Nampa-Reuters