Johannesburg - South Africa's rand was little changed in early trade on Wednesday ahead of more political announcements of possible coalition governments in two key municipalities from opposition parties.
At 06h27 GMT, the rand traded at 13.4100 per dollar, 0.04 percent up from its Tuesday close.
South Africa's main opposition Democratic Alliance (DA) and the leftist Economic Freedom Fighters (EFF) will not form coalition governments in two key municipalities, a DA party executive said on Wednesday.
“The rand gains of the past two months have primarily been driven by the expectation of fresh global policy easing and the resulting search for yield. A Fed hike would risk this entire trade,” said Rand Merchant Bank analyst John Cairn in a note.
The Federal Reserve to meet later today with raised expectations for an interest rate rise this year.
In fixed income, the yield on 2026 benchmark government bond was largely unchanged, down 1.5 basis points to 8.450 percent.
REUTERS