South African rand slips ahead of key US inflation report

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South African rand slips ahead of key US inflation report

9:55 CAT | 22 Dec 2023

File photo: Reuters

South Africa’s rand slipped on Friday, as focus shifted towards a reading of a key U.S. inflation gauge due later in the day.

At 0630 GMT, the rand traded at 18.4075 against the dollar ZAR=D3, down 0.2% from its previous close.

“The rand struggled yesterday… as thin liquidity and the squaring of short dollar positions ahead of the Christmas long weekend hit the currency,” said Andre Cilliers, currency strategist at TreasuryONE.

In the absence of local economic indicators, investors will look at U.S. core personal consumption expenditures print, the Federal Reserve’s preferred measure of underlying inflation, which is expected to provide clues on its interest rate path next year.

South Africa’s benchmark 2030 government bond ZAR2030= was weaker in early deals, with the yield up 5.5 basis points at 9.830%.

Source: Reuters