Rand Holds Steady Ahead of Fed Decision

The South African rand remained relatively stable on Tuesday as investors weighed in on the possibility of a Federal Reserve interest rate increase. The currency traded at 16.7475 against the dollar, nearly unchanged from its previous close.

Gold prices dropped 1.1%, which could impact South Africa's economy due to its reliance on gold exports. The dollar held steady near a four-week high as traders considered the likelihood of a rate hike this week.

Markets are pricing in a nearly 40% chance of a 25-basis-point rate increase by the Fed on Wednesday, up from about 20% a week ago. Traders see almost a 95% probability of a hike by September.