The monetary unit of the African continent's largest economy rose in value on Tuesday amid optimism for the central bank of the U.S. implementing additional stimulus, according to Bloomberg.
The South African rand benefited from prospects that the policy-making arm of the U.S. Federal Reserve will discuss additional strategies of spurring the globe's largest economy when it convenes for two days of meetings beginning Wednesday.
"Generally, the market continues to trade with a positive risk bias ahead of the much-awaited FOMC decision," head of emerging markets research Benoit Anne with Societe General stated in an e-mail to Bloomberg on Tuesday. "The rand, which did sell off earlier this morning after a particularly bad current account number, did not waste too much time staging a bounce back."
South Africa's current account, which gauges commerce of goods and services, increased to 6.4 percent during the second quarter of the year, representing the largest shortfall since the third quarter of 2008.
Mail & Guardian reports economists had projected the current account deficit would climb to 4.7 percent.