The South African rand strengthened on Thursday after the US Federal Reserve held interest rates as expected and reiterated its inflation concerns.
At 0742 GMT, the rand traded at 18.5050 against the dollar, 0.68% stronger than its previous close.
The dollar index was down 0.1% against a basket of currencies.
The Fed said Wednesday it continues to lean toward possible reductions in borrowing costs, but it placed a red flag on recent inflation readings that could delay any interest rate cuts.
South African investors will focus on the manufacturing purchasing managers’ index and vehicle sales in April on Thursday.
The absence of load shedding (power cuts) in April would have boosted the manufacturing sector, ETM Analytics said in a research note.
In the stock market, the Top-40 index and the broader all-stock index were both up about 1% in early trading.
South Africa’s benchmark 2030 government bond was stronger in early trading, with the yield down 6 basis points to 10.615%.
