CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

South African rand softens as oil prices rise, Fed in focus

By Reuters News

JOHANNESBURG, Oct 28 (Reuters) - The South African rand was under pressure in early trade on Wednesday as higher oil prices fuelled inflation concerns, while investors awaited the US Federal Reserve's policy decision later in the day for clues on the interest rate outlook.

  • At 0652 GMT, the rand traded at 16.68 against the dollar , down 0.2% from its previous close

  • Oil prices rose more than 1% on Wednesday after an attack on a refinery in Saudi Arabia renewed concerns around supply risks from the major exporter

  • Markets are awaiting the Fed's policy decision at 1800 GMT, as well as Personal Consumption Expenditures data, a key inflation gauge closely watched by the central bank, on Thursday

  • Traders largely expect the Fed to leave rates unchanged on Wednesday but are pricing in an 84% chance of a December rate hike, according to the CME's FedWatch Tool

  • ETM Analytics said the rand could weaken beyond the 17.00-per-dollar level if rising oil prices and Fed-related pressures persist

  • In the absence of major domestic data, the rand, like other emerging market currencies, tends to take direction from global factors, including US economic releases and geopolitical developments

  • On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was down about 0.2% in early trade

  • South Africa's benchmark 2035 government bond weakened in early deals, with the yield rising 2 basis points to 8.6%

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.