JOHANNESBURG: South Africa’s rand edged higher early on Monday, as risk sentiment remained positive ahead of the US Federal Reserve’s policy decision later in the week.

At 0716 GMT, the rand traded at 18.27 against the dollar, 0.14% stronger than its previous close.

Emerging market currencies like the rand will look at the Fed’s decision on Wednesday for further direction, analysts said.

“The Fed is expected to keep rates on hold but markets are looking for a more dovish outlook going forward,” said Andre Cilliers, currency strategist at TreasuryONE.

Domestic investors are also awaiting South Africa’s June trade and budget balance figures due this week.

South African Reserve Bank data earlier showed South Africa’s June M3 money supply growth was at 4.19% and credit growth at 4.27% year-on-year.

South African rand little changed in early trade

M3 is a measure of money supply released by the central bank, which includes all currency in circulation, bank deposits and debt securities, among others.

On the stock market, the Top-40 index was up 0.4% in early trade.

South Africa’s benchmark 2030 government bond was marginally stronger, with the yield down 1.7 basis points to 9.46%.