Money SA economy
The rand was a tad softer in midday trade on Tuesday ahead of the Fed monetary policy decision later in the day.
A local dealer said the Fed's decision will determine the euro/dollar movement, which will in turn affect the rand. At 11.44am local time the rand was bid at R7.23 to the dollar, R9.51 to the euro and R11.39 to the pound. The euro was bid at $1.3165 from $1.3227 overnight.
A local trader said: "The market is divided as to whether the US Federal Reserve will take quantitative easing measures to boost its economy given the recent weak economic data out of that country. Any decision taken will affect the euro/dollar play which will in turn affect the rand."
Meanwhile, Dow Jones Newswires reports that the dollar and the yen are higher on Tuesday as investors wait to see if the U.S. Federal Reserve decides to ease monetary policy even more at its open market committee meeting later in the day.
This move into safe-haven currencies, at the expense of the euro, came after the Bank of Japan left its monetary policy unchanged and China reported that its trade surplus in July rose back to an 18-month high.
