South Africa’s rand weakened against the U.S. dollar on Wednesday ahead of an interest rate decision by the central bank, although the currency remained in sight of recent three week highs.
By 1540 GMT the rand had slipped 0.3 percent versus the greenback to 11.8355, losing the momentum that saw the unit climb to a session high of 11.7550 earlier as the dollar continued to suffer against major currencies.
The index measuring the dollar against a basket of currencies showed it 0.3 percent softer on Wednesday, weighed down by expectations that the Federal Reserve may delay lifting rats to as late as September.
The euro, boosted by a forecast-beating survey of German business morale, was a major gainer against the dollar, firming 0.4 percent on the day.
Against the resurgent euro, which reached a 12-year high against the dollar on Tuesday, the rand had softened 0.44 percent to 12.9422.
Government bonds were firmer, shedding 3.5 basis points to 7.615 percent.
South African Reserve Bank’s policy statement on Thursday is not likely to offer any surprises, with all 35 economists polled by Reuters expecting the benchmark repo rate to stay unchanged at 5.75 percent.