Johannesburg: The South African rand held steady in early trading on Monday, with little movement ahead of anticipated U.S. inflation figures slated for release later this week. These data points are expected to provide insights into the Federal Reserve’s future monetary policy decisions.
As of 0630 GMT, the rand was trading at 18.4200 against the dollar, maintaining proximity to its previous closing level of 18.4300.
The dollar, meanwhile, hovered near its last closing mark of 105.33 against a basket of global currencies. Market attention is now focused on the forthcoming U.S. inflation data scheduled for release on Wednesday.
RMB market analysts noted, “Following last month’s data and the persistent hawkish rhetoric from Fed officials, it appears that any adjustments to interest rates in the U.S. are likely to occur no earlier than the third quarter of the year.”
The South African rand’s performance in early trade mirrored that of other emerging market currencies, which often react to global economic indicators, particularly those from the United States, alongside domestic factors.
On the local front, the Johannesburg Stock Exchange is set to disclose information regarding foreign investment activity in South African bonds and equities. Additionally, the government is scheduled to conduct its weekly auction for Treasury bills on Monday.
South Africa’s benchmark 2030 government bond exhibited minimal movement in early trading, with the yield holding steady at 10.515%.
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