South African rand weaker as markets await US inflation data

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South African rand weaker as markets await US inflation data

9:33 CAT | 12 Sep 2023

File photo: Reuters

The South African rand was weaker in early trade on Tuesday, having jumped more than 1% in the previous session, as markets awaited U.S. inflation data on Wednesday that could shed light on the Federal Reserve’s interest rate path.

At 0535 GMT, the rand traded at 18.9200 against the dollar ZAR=D3, 0.28% weaker than its previous close.

The dollar =USD last traded around 0.08% stronger against a basket of global currencies.

“Data/event risk is low, and markets are really in wait and see mode for tomorrow afternoon’s U.S. CPI report,” Rand Merchant Bank analysts said in a research note.

Like other emerging market currencies, the risk-sensitive rand often takes cues from global economic events such as U.S. monetary policy in the absence of major local drivers.

South Africa’s benchmark 2030 government bond ZAR2030= was flat in early deals, with the yield at 10.405%.

Source: Reuters