South African rand slips as Powell signals modest rate cuts
Updates prices to reflect afternoon trade
JOHANNESBURG, Oct 1 (Reuters) -The South African rand weakened against a stronger dollar on Tuesday, after Federal Reserve Chair Jerome Powell poured cold water on bets of more big interest rate cuts.
At 1531 GMT, the rand traded at 17.4050 against the dollar ZAR=D3, 0.8% softer than its previous close.
Powell adopted a more hawkish tone in a speech at a conference on Monday, saying the U.S. central bank was likely to stick with 25 basis point interest rate cuts from now on, while U.S. data on Tuesday also showed a solid economy.
Reports of an imminent missile attack by Iran on Israel also drove safe haven demand.
The dollar index =USD was last up 0.4% against a basket of currencies.
Locally, a purchasing managers' index survey showed South African manufacturing activity rose in September, thanks to improved demand and a boost in sentiment from an interest rate cut by the country's central bank.
The rand is set to take cues from global drivers such as U.S. economic data releases this week, with slim pickings on the domestic front.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index .JTOPI closed little changed.
South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 12 basis points to 8.965%.
Reporting by Tannur Anders and Bhargav Acharya
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