Johannesburg: The South African rand exhibited minimal movement early on Tuesday as traders exercised caution awaiting key U.S. inflation figures, pivotal in determining the Federal Reserve’s stance on interest rates. At 0645 GMT, the rand hovered around 18.6650 against the dollar, maintaining its proximity to the previous day’s close. Concurrently, the dollar index showed stability against a basket of currencies.
According to Andre Cilliers, currency strategist at TreasuryONE, trading remained subdued with low volumes, reflecting the prevailing caution among investors.
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Similar to other emerging market currencies, the rand’s trajectory is influenced by global factors, notably U.S. monetary policy, in addition to domestic economic indicators. South Africa is devoid of major data releases until Thursday when January’s gold, mining, and manufacturing production figures are due.
In early trading, South Africa’s benchmark 2030 government bond displayed weakness, with the yield rising by 2.5 basis points to 10.130%.
