South African rand firms as commodity prices rise, focus turns to Fed

JOHANNESBURG, Oct 27(Reuters) - The South African rand edged higher on Tuesday, supported by firmer commodity prices, while investors looked ahead to the Federal Reserve's policy meeting for clues on the future direction of US interest rates.

• At 1630 GMT, the rand was trading at 16.6150 to the dollar , about 0.2% stronger than its previous close

• South Africa's key export commodities gained, with gold rising 0.9% to $4,051.78 per ounce and platinum climbing 0.3% to $1,531.95.

• Markets are awaiting the Fed's policy decision on Wednesday.

• Traders are pricing in about an 11% chance of a rate hike this week and an 82% chance of a December increase, according to the CME's FedWatch Tool.

• Like other risk-sensitive currencies, the rand often takes its cues from global factors, particularly US monetary policy, alongside domestic economic data.

• The South African Reserve Bank's leading business cycle indicator ZALEAD=ECI rose 1.1% month-on-month in August, pointing to an improvement in economic activity.

• On the Johannesburg Stock Exchange, the Top-40 index .JTOPI closed up 0.6%.

• South Africa's benchmark 2035 government bond was also firmer, as the yield fell 5.5 basis points to 8.58%.