South African rand edges higher ahead of US rate decision

JOHANNESBURG, Jan 29 (Reuters) - South Africa's rand edged higher early on Wednesday ahead of an interest rate decision by the U.S. Federal Reserve.

At 0706 GMT, the rand traded at 18.66 against the U.S. dollar ZAR=D3, about 0.1% firmer than its previous close.

The dollar =USD last traded about 0.1% weaker against a basket of currencies.

The Fed will conclude its two-day meeting today, where it is widely expected to keep rates steady. U.S. President Donald Trump has demanded lower interest rates, arguing that he understands monetary policy better than those charged with setting it.

Investor focus is also on tariff threats after White House spokesperson Karoline Leavitt told reporters on Tuesday that Trump still plans to impose tariffs on Canada and Mexico this week.

On Thursday, domestic investors will turn their attention towards the South African Reserve Bank's (SARB) first interest rate decision for 2025.

Economists polled by Reuters forecast a 25 basis point cut to 7.50%.

On the stock market, the Top-40 .JTOPI was up about 0.4%.

South Africa's benchmark 2030 government bond ZAR2030= was stronger in early deals, with the yield down 4.5 basis points to 8.99%.