South African rand flat as markets weigh Fed's rate stance

New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg
South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko

JOHANNESBURG, March 24 (Reuters) - South Africa's rand was listless against a steady dollar on Friday, as investors assessed the prospects that the U.S. Federal Reserve might pause its rate-hike trajectory.

At 0620 GMT, the rand traded at 18.0825 against the dollar, near its previous close of 18.0850.

The dollar index , which measures the safe-haven currency against six rivals, held ground at 102.53.

The U.S. Fed on Wednesday delivered an expected interest rate hike of 25 basis points, but took a cautious stance on economic outlook due to the recent banking sector turmoil.

Local investors will shift their focus towards the central bank's rate decision due next week, with markets expecting a 25-basis-point hike.

The government's benchmark 2030 bond was unchanged in early deals, with the yield at 9.950%.

Reporting by Bhargav Acharya; Editing by Sherry Jacob-Phillips

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