South African rand stable, supported by investors’ Fed conviction

JOHANNESBURG (Reuters) -The South African rand was stable on Tuesday, supported by the conviction among global investors that the U.S. Federal Reserve will not raise interest rates again.

At 1606 GMT, the rand traded at 18.6500 against the dollar, the same level as its previous close.

The dollar was last trading down 0.3% against a basket of major currencies and on track for a loss of more than 3% in November, its worst performance in a year.

In the absence of major local drivers, global market factors were in the driving seat for the rand on Tuesday.

“The local currency was supported by improved risk sentiment and the gold price consolidating above the $2,000 level,” said Andre Cilliers, currency strategist at TreasuryONE.

Later this week South Africa-focused investors will turn their attention to October trade , budget, producer inflation and private sector credit figures.

The global focus will be on the Fed’s preferred measure of inflation and an OPEC+ policy meeting.

On the Johannesburg Stock Exchange, the Top-40 index and the All-share index rose 0.3%.

The benchmark 2030 government bond was stronger, the yield down 12 basis points to 10.025%.

(Reporting by Bhargav Acharya and Alexander Winning; Editing by Mark Porter)