(Updates to reflect afternoon trade)
JOHANNESBURG, Feb 1 (Reuters) - South Africa's rand
strengthened against a weakened dollar on Wednesday as investors
awaited the U.S. Federal Reserve's interest rate decision, which
could signal the end of its tightening cycle.
At 1559 GMT, the rand traded at 17.1775 against the
U.S. dollar, 1.22% stronger than its previous close.
The dollar index , which measures the currency against
six rivals, was down around 0.4% at 101.68.
The Fed is expected to raise its target interest rate by 25
basis points, setting aside the rapid hikes used last year to
curb a surge in inflation in favour of a more stepwise hunt for
a stopping point.
South Africa's new vehicle sales rose 4.8%
year-on-year in January, data showed on Wednesday, while
separately the Absa Purchasing Managers' Index (PMI) remained in
positive territory thanks to growth in business activity and
inventories.
On the Johannesburg Stock Exchange, the Top-40 and
the broader all-share indexes closed around 0.4%
higher.
Among notable gainers, Bid Corporation jumped 6.57%
after the food service firm said it expected its half year
profit to rise as much as 49%.
Harmony Gold closed 2.76% higher after the miner
said improved metal grades at its underground mines during the
second quarter helped it meet production targets and offset the
impact of ongoing power cuts in South Africa and global supply
chain disruptions.
The government's benchmark 2030 bond was stronger
in afternoon deals, with the yield down 7 basis points to
9.605%.
(Reporting by Nellie Peyton, Nqobile Dludla and Anait
Miridzhanian; Editing by Savio D'Souza and Jonathan Oatis)
