JOHANNESBURG, Sept 17 Reuters The South African rand held steady on Tuesday, with investor focus on Wednesday39;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.

At 1501 GMT, the rand traded at 17.635 against the dollar , not far from its Monday closing level of 17.6225.

Markets are certain the Fed will cut rates when it makes its policy announcement on Wednesday and are leaning towards more aggressive easing in the world39;s biggest economy.

Markets have started positioning themselves for a 50bps basis points rate cut by the Fed, said Andre Cilliers, currency strategist at TreasuryONE.

Like other risksensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in addition to domestic factors.

On Wednesday, local investors will look to South Africa39;s August consumer inflation figures and on Thursday, the South African Reserve Bank will announce its policy decision.

Economists polled by Reuters predict a 25basispoint rate cut by the central bank of Africa39;s most industrialised economy.

On the stock market, the Top40 index closed 1.2 higher.

South Africa39;s benchmark 2030 government bond was weaker, as the yield rose 3 basis points to 8.855.

Reporting by Tannur Anders with additional reporting by Bhargav Acharya; Editing by Emelia SitholeMatarise and Vijay Kishore

Source Reuters