Johannesburg — South Africa’s rand slipped early on Wednesday, as focus turned towards U.S. inflation data that could provide more clues on the Federal Reserve’s interest rate path.
At 0610 GMT, the rand traded at 18.9400 against the dollar, about 0.16% weaker than its previous close.
The dollar index was last up 0.16% against a basket of currencies.
“Focus for the day ahead will be on the US inflation numbers, which carry two-way risks for the market given the uncertainty surrounding the Fed’s outlook,” ETM Analytics said in a research note.
Like most other emerging market currencies, the risk-sensitive rand tends to take cues from global economic drivers such as U.S. monetary policy in the absence of local data points.
South Africa’s benchmark 2030 government bond slipped in early deals, with the yield up 5 basis points to 10.405%.
*Bhargav Acharya; Editing: Subhranshu Sahu – Reuters
