JOHANNESBURG, May 7 (Reuters) – The South African rand slipped on Wednesday as investors took profits after a strong run against the dollar.
At 1230 GMT, the rand traded at 18.2825 to the U.S. currency, down about 0.5% on Tuesday’s closing level.
The rand had strengthened for the previous four trading sessions.
Andre Cilliers, currency strategist at TreasuryONE, said traders were trimming long rand positions ahead of the U.S. Federal Reserve’s interest rate announcement later in the day.
The Fed is widely expected to keep rates steady, amid concerns over an economic slowdown caused by U.S. President Donald Trump’s tariffs.
News that U.S. and Chinese officials are due to hold talks this weekend soothed financial markets as it could be the first step towards resolving a trade war that has disrupted the global economy.
No major South African economic data releases are expected on Wednesday.
President Cyril Ramaphosa will launch the second phase of an economic reform drive aimed at lifting the country’s potential growth rate.
Thursday’s local data releases include manufacturing and foreign reserves data.
The Johannesburg Stock Exchange’s Top-40 index last traded down 0.3%. The benchmark 2030 government bond was flat, the yield at 8.92%.
(Reporting by Sfundo Parakozov and Alexander Winning; editing by Barbara Lewis)
