South African rand edges up at start of data-filled week

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South African rand edges up at start of data-filled week

9:36 CAT | 28 Aug 2023

File photo: Reuters

The South African rand edged up against a weaker dollar in early trade on Monday, at the start of a packed week for local economic data.

At 0645 GMT, the rand traded at 18.5750 against the dollar ZAR=D3, about 0.2% stronger than its closing level on Friday.

The dollar =USD last traded around 0.2% weaker against a basket of global currencies.

The rand gained roughly 2% last week, mainly taking its cue from offshore factors.

“The rand is, unfortunately, merely a passenger in the global current of macro developments,” Rand Merchant Bank analysts said in a research note, adding that the currency would probably stay volatile in the months ahead “as the (U.S. Federal Reserve) dictates terms for global asset prices via the dollar”.

Local data releases this week including July money supply ZAM3=ECI, private sector credit ZACRED=ECI and budget ZABUDM=ECI numbers on Wednesday, and July producer inflation ZAPPIY=ECI and trade ZATBAL=ECI figures on Thursday.

South Africa’s benchmark 2030 government bond ZAR2030= was slightly stronger in early deals, with the yield down 2.5 basis points to 10.185%.

Source: Reuters