JOHANNESBURG: South Africa’s rand weakened on Monday as investors maintained a cautious stance ahead of this week’s highly anticipated policy meeting by the US Federal Reserve.

At 0646 GMT, the rand traded at 18.2425 against the dollar, 0.51% weaker than its previous close.

The US Fed is expected to deliver another 75-basis-point rate hike after the conclusion of this week’s policy-setting meeting on Wednesday. “If the Fed remains very hawkish, the dollar can continue its rally … placing risk assets like the rand under pressure,” Andre Cilliers, currency strategist at TreasuryONE said in a research note.

The dollar index, which measures the currency against six rivals, was last trading up 0.06% to 110.88.

South African rand weakens against stronger dollar

South Africa’s private sector credit in September rose 9.74% year-on-year after rising by 7.86% in the prior month, according to central bank data.

The government’s benchmark 2030 bond was lower in early deals, with the yield up 2 basis points to 10.760%.