South African rand weaker on Fed meeting expectations

JOHANNESBURG (Reuters) -The South African rand fell on Monday, as investors bet the U.S. Federal Reserve will announce that it will wrap up its bond purchases sooner than expected at a meeting this week.

At 1644 GMT, the rand traded at 16.0075 against the dollar, around 0.2% weaker than its previous close, with concerns about a surge in domestic COVID-19 cases also weighing on the rand.

The dollar was 0.2% stronger against a basket of currencies.

The Fed's two-day gathering wraps up on Wednesday, with clues about the timing of interest rate increases next year also in focus.

A flurry of South African economic data releases including the November consumer price index, producer inflation and a leading business cycle indicator are also due on Wednesday.

In fixed income, the yield on the benchmark 2030 government bond was down 1 basis point to 9.48%.

Stocks fell slightly, with the Johannesburg Stock Exchange's Top-40 Index slipping 0.33% to 65,177 points and the broader All-Share Index losing 0.36% to 71,430 points.

Retailer Shoprite rose 1.71%. It said on Monday it had entered into a joint venture agreement with a delivery partner in a drive to grow its e-commerce business.

(Reporting by Olivia Kumwenda-Mtambo, Emma Rumney and Alexander WinningEditing by Raissa Kasolowsky)