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Rand weakens as oil rises and Fed decision looms

Published

The rand traded at R16.68 to the dollar in early trade on Wednesday, down 0.2% from its previous close. Higher oil prices fuelled inflation worries while investors waited for the US Federal Reserve to announce its policy decision.

Traders largely expect the Federal Reserve to leave rates unchanged. They have priced in an 84% chance of a December rate hike, according to the CME FedWatch Tool. Oil prices rose by 1% on Wednesday.

ETM Analytics said the rand could weaken beyond R17.00 to the dollar if rising oil prices and pressure linked to the Fed persist.

On the Johannesburg market, the Top-40 index fell 0.2% in early trade. The yield on South Africa's 2035 government bond rose by 2 basis points to 8.6% in early deals.

Key facts

Who
United States Federal Reserve (US central bank whose policy decision was awaited); ETM Analytics (analysts who commented on the rand); CME FedWatch Tool (source of rate-hike probability)
What
The rand softened in early trade as higher oil prices fuelled inflation concerns, with markets awaiting the Federal Reserve's policy decision later in the day. Traders largely expected the Fed to leave rates unchanged but priced in an 84% chance of a December rate hike, according to the CME FedWatch Tool.
When
28 October 2026
Where
Johannesburg, United States, Saudi Arabia
Status
Reported

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