South African rand weakens at start of busy data week

by MMC
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JOHANNESBURG, Sept 26 (Reuters) – South Africa’s rand weakened in early trading on Tuesday as the U.S. dollar appreciated, ahead of the release of key business cycle indicators and other economic data later in the day. week.

At 06:34 GMT, the rand was trading at 18.8950 against the dollar, almost 0.7% lower than its previous close.

The dollar last appreciated about 0.15% against a basket of global currencies.

At 07:00 GMT, the South African Reserve Bank will release the country’s leading business cycle indicator for July and around 09:00 GMT the government will hold its weekly government bond auction.

South Africa will also this week release producer price inflation, money supply, trade balance and budget figures for August, which will provide clues on the health of the economy.

“Even though the rand is doing very well, there is no point fighting against a stronger dollar,” Rand Merchant Bank (RMB) analysts said in a research note.

The dollar jumped following comments from the Federal Reserve suggesting it could keep interest rates high for longer, the RMB added.

Like other risk-sensitive currencies, the rand is often influenced by global factors like US monetary policy.

South Africa’s benchmark 2030 government bond was weaker in early trading, with the yield up 9 basis points to 10.745%. (Reporting by Tannur Anders; editing by Nellie Peyton and Louise Heavens)

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