South Africa proposes buying US LNG as seeks trade deal
South African rand edges higher ahead of local CPI, Fed rate decision
11:43 CAT | 20 Sep 2023
File photo: Reuters
The South African rand edged higher in early trade on Wednesday ahead of local consumer price index (CPI) data and an interest rate announcement from leaders in the world’s biggest economy.
At 0615 GMT, the rand traded at 18.9000 against the dollar ZAR=D3, more than 0.1% above its previous close.
The dollar =USD last traded around 0.02% stronger against a basket of global currencies.
At 0800 GMT, Statistics South Africa will release the country’s August consumer inflation data ZACPIY=ECI.
Analysts polled by Reuters predict a 4.8% year-on-year rise in inflation, within the central bank’s target range of 3% to 6%.
The U.S. Federal Reserve is due to announce its main interest rate decision later on Wednesday, giving hints at the health of the world’s biggest economy.
“The rand is trading solidly in tight ranges with little risk today, but tonight’s Fed should give it new multi-week direction,” said Rand Merchant Bank analysts in a research note.
Focus will be on the Fed’s tone and economic forecasts, RMB added, adding that a hawkish tone would weaken the rand.
On Thursday the South African Reserve Bank will announce its main interest rate decision.
South Africa’s benchmark 2030 government bond ZAR2030= was slightly weaker in early deals, with the yield up 1 basis point to 10.495%.
Source: Reuters
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