BR Diamonds The rand remained resilient after the US Federal Reserve left interest rates unchanged, although economists warned that escalating Middle East tensions continued to cloud the global economic outlook.
The South African rand remained broadly stable on Thursday after the United States Federal Reserve kept interest rates unchanged, while investors continued to assess the impact of renewed conflict in the Middle East on global inflation, oil prices and financial markets.
The Federal Open Market Committee (FOMC) left its benchmark interest rate unchanged at between 3.5% and 3.75%, marking its fifth consecutive decision to pause monetary policy.
Investec chief economist Annabel Bishop said the decision had little immediate effect on the rand.
"The rand has seen little impact. At R16.71 to the US dollar, it is similar to the day before, with flat US interest rates expected, and unlikely to cause rand weakness as a US interest rate hiking cycle typically does," Bishop said.
