Rand still lower against the dollar

The South African rand was a tad softer in afternoon trade on Wednesday tracking the single currency which came off slightly against the US dollar amid risk aversion.

At 15.41pm the rand was bid at R7.55 to the dollar, R9.24 to the euro and R11.24 to the pound. The euro was bid at $1.2228 from $1.2314 overnight.

A local dealer said:" The rand weakened slightly as the euro slipped further against the US dollar amid risk aversion. "We traded in a 7.50-760 range. In the meantime, markets are looking to the US FOMC (Federal Open Market Committee) for direction."

Dow Jones Newswires reports that the UK pound hit a six-week high against the dollar Wednesday after minutes from the latest Bank of England Monetary Policy Committee meeting showed one member voted to increase key interest rates.

Meanwhile, the euro traded in a tight range against the dollar as investors were cautious to put on new positions ahead of Wednesday's statement from the rate-setting U.S. Federal Open Market Committee.

The committee was expected to leave rates unchanged, but investors will pay close attention to the accompanying statement for any change in language that hint at the Fed's road to policy tightening.