South Africa's Nedbank 10-month profit growth above mid-single digits
South African rand recovers against dollar as US inflation data looms
10:02 CAT | 12 Dec 2023
File photo: Reuters
The South African rand recovered in early trade on Tuesday against the dollar as global markets braced for consumer inflation data out of the U.S. that could set the tone for the Federal Reserve’s future interest rate path.
At 0635 GMT, the rand traded at 19.0025 against the dollar ZAR=D3, about 0.4% stronger than its previous close.
The dollar =USD last traded around 0.18% weaker against a basket of global currencies.
The rand has made a slight recovery after being on the backfoot against the dollar on Monday on expectations the Fed might not cut interest rates early next year.
“With hopes of an early rate cut by the Fed receding, traders will be watching today’s inflation data and Powell’s post-FOMC press statement very closely tomorrow,” said Andre Cilliers, currency strategist at TreasuryONE.
The U.S. Federal Reserve is expected to hold rates on Wednesday.
The risk-sensitive rand often takes cues from global movers like U.S. monetary policy in addition to local drivers.
Locally, Statistics South Africa will publish the country’s October mining data ZAMNG=ECI and manufacturing figures ZAMAN=ECI.
South Africa’s benchmark 2030 government bond ZAR2030= was stronger in early deals, with the yield down 3.5 basis points to 10.100%.
Source: Reuters
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