Johannesburg — The South African rand was on the back foot in early trade on Monday, as the dollar firmed on investor bets that the U.S. Federal Reserve would keep monetary policy tight for longer.
At 0610 GMT, the rand traded at 17.9425 against the dollar, about 0.3% weaker than its closing level on Friday.
The dollar was up more than 0.1% against a basket of global currencies, with market attention firmly pinned on Tuesday’s U.S. consumer price report and its implications for the Fed’s interest rate trajectory.
No major South African economic data releases are due on Monday, so the rand will probably track global market moves.
South Africa’s latest consumer price report (ZACPIY=ECI) is due on Wednesday, when retail sales figures (ZARET=ECI) will also be published.
The government’s benchmark 2030 bond was slightly weaker in early deals, with the yield rising 2.5 basis points to 9.890%.
*Alexander Winning; Editing: Sherry Jacob-Phillips – Reuters
Follow us on twitter
