South African rand firms as trading volumes likely to be thin on US holiday

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South African rand firms as trading volumes likely to be thin on US holiday

10:32 CAT | 04 Jul 2023

File photo: Reuters

The South African rand firmed against the dollar in early trade on Tuesday in range-bound trading due to a U.S. holiday and lack of local economic data points.

At 0632 GMT, the rand traded at 18.7000 against the dollar ZAR=D3, around 0.5% stronger than its previous close.

The dollar =USD last traded at 102.940, around 0.02% weaker, against a basket of global currencies.

The rand traded largely sideways on Monday and the July 4 holiday in the United States is expected to constrain trade, said Rand Merchant Bank analysts in a research note.

Bigger moves could come when the U.S. Federal Reserve releases its June meeting minutes on Wednesday, said analysts at ETM.

Like other emerging market currencies, the risk-sensitive rand often takes cues from global drivers such as the dollar, in the absence of local catalysts.

South Africa’s benchmark 2030 government bond ZAR2030= was slightly stronger in early deals, with the yield down 0.5 basis points to 10.505%.

Source: Reuters