JOHANNESBURG, Oct 9 (Reuters) - South Africa's rand softened on Wednesday, ahead of the closely watched minutes from the Federal Reserve's September meeting.

At 1554 GMT, the rand traded at 17.6425 against the dollar , about 0.3% weaker than its previous close.

The dollar index last traded up about 0.3% against a basket of currencies.

"Dollar strength of late can be attributed to stronger economic data out of the region which is dimming the outlook of further outsized rate cuts this year in the world's largest economy," said Shaun Murison, senior market analyst at IG.

"The rand looks to be eyeing out a move towards the R18/$ mark as it has now firmly cleared the R17.50/$ level."

Fed minutes due later in the day were expected to provide an explanation for the U.S. central bank's big interest rate cut last month, and could potentially offer more clues on its interest rate trajectory.

The risk-sensitive rand is susceptible to global movers like the direction of U.S. monetary policy.

On Thursday, September U.S. consumer inflation figures will be released, while domestic investors also turn their focus towards monthly mining and manufacturing data.

On the stock market, the Top-40 (.JTOPI) , opens new tab index closed about 0.2% down.

South Africa's benchmark 2030 government bond was stronger, with the yield down 6.5 basis points to 9.17%.

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https://www.reuters.com/markets/currencies/south-african-rand-edges-lower-ahead-fed-minutes-2024-10-09/