South African Rand coins are seen in this photo illustration. REUTERS-Mike Hutchings

South Africa’s rand firmed against the dollar early on Wednesday, ahead of domestic consumer price inflation figures and the U.S. Federal Reserve’s monetary policy decision.

At 0635 GMT, the rand traded at 16.4575 per dollar, 0.47% firmer than its close on Tuesday.

“With the Federal Reserve in focus and future U.S. economic growth being called into question, the dollar remains under pressure, while the rand continues to mark time within its broader range,” said Bianca Botes, executive director at Peregrine Treasury Solutions in Pretoria.

“The market will be looking for an indication of further stimulus by the Fed in the future.”

The U.S. central bank, which will publish its decision at 1800 GMT, is widely expected to reinforce its loose monetary stance.

Local focus will be on June CPI, due at 0800 GMT. Growth in consumer prices fell to its lowest in more than 15 years in May as spending slowed amid the coronavirus lockdown.

In fixed income, the yield on the long-dated government benchmark bond due in 2030 was unchanged at 9.185% from the previous close.

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