Rand softer on S&P growth concerns

THE RAND weakened yesterday ahead of a US Federal Reserve (Fed) policy decision and concerns by S&P Global Ratings over the domestic economy, which saw investors repositioning their bets.

At 5pm, the rand was bid at R13.1826 to the dollar, 4.20c softer than at the same time on Monday.

A Fed rate rise tonight is seen as all but certain and investors will focus on new economic forecasts and any clues as to how many rate hikes can be expected this year.

Investors also fretted over S&P Global Ratings’ concerns about weak domestic economic growth and political tensions in Africa’s most industrialised economy, which faces the prospect of downgrades to its sovereign credit ratings, which would raise the cost of borrowing.

Government bonds also fell.