Ahead of the US Federal Reserve meeting, the South African rand strengthened in early trade on Wednesday, March 16, 2022.

As investors await the outcome of the Fed's policy meeting and possible peace talks between Russia and Ukraine, the South African rand is surging. At 0640 GMT, the rand was trading at 15.0700 against the dollar, 0.23% higher than its previous close. But investors remained cautious ahead of the U.S. Federal Reserve's rate decision, against the backdrop of war in Ukraine and surging COVID-19 cases in China.

The Fed is set to raise rates for the first time since the pandemic as traders seek guidance on the pace of future rate hikes. In fixed income, the yield on the benchmark 2030 government bond was flat at 9.795%.