South African Rand coins are seen in this photo illustration

South Africa's rand steady, investors eye Fed meeting

JOHANNESBURG (Reuters) - South Africa's rand traded flat on Tuesday as the dollar sagged on expectations the Federal Reserve would adopt a dovish outlook this week and concerns about slower U.S. economic growth.

As of 0640 GMT, the rand was 0.1 percent firmer at 14.4250 per dollar, little changed from its close of 14.4400 overnight in New York.

The currency sank to 14.4925 in the European session as ongoing nation-wide electricity outages by state utility Eskom dampened sentiment.

Public enterprises minister Pravin Gordhan plans to brief the media on Tuesday on the government's plans for the troubled power utility.

The greenback was dragged to near two-week lows by growing expectations the Federal Reserve would adopt a more accommodative policy outlook this week, while keeping its benchmark interest rate unchanged.

Government bonds also firmed, with the yield on the benchmark instrument maturing in 2026 down 1.5 basis points to 8.68 percent.

(Reporting by Mfuneko Toyana, Editing by Sherry Jacob-Phillips)

2019-03-19 10:10:30

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