JOHANNESBURG, July 16 (Reuters) – The South African rand clawed back some losses on Tuesday, after tumbling on Monday, on rising expectations that the U.S. Federal Reserve will soon cut interest rates.

At 0800 GMT, the rand traded at 18.1575 against the dollar, about 0.2% stronger than its previous close.

Federal Reserve Chair Jerome Powell said on Monday that recent U.S. inflation readings have somewhat added to confidence that the pace of price increases is sustainably returning to the Fed’s target, driving hopes that interest rate cuts are nearing.

The rand slipped more than 1% against the greenback on Monday as investor appetite for riskier assets waned globally after the assassination attempt on former U.S. President Donald Trump on Saturday.

Locally, investors will focus on the South African Reserve Bank’s (SARB) interest rate decision and President Cyril Ramaphosa’s opening address to parliament, both on Thursday.

A Reuters poll found that the SARB will leave its repo rate unchanged on Thursday, but cut rates by 25 basis points to 8.00% in September as inflation cools, earlier than a November move that was expected in a June survey.

“For now with no interest rate cut expected locally on Thursday, the rand will look at the international front for cues,” said Andre Cilliers, currency strategist at TreasuryONE.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down around 1% in early trade.

South Africa’s benchmark 2030 government bond was stronger in early deals, as the yield fell 5.5 basis points to 9.52%.

(Reporting by Tannur Anders; Editing by Susan Fenton)