JOHANNESBURG: South Africa’s rand was weaker in early trade on Tuesday, as investors looked to the Fed’s Jackson Hole symposium for hints on the US interest rate trajectory, while also eyeing inflation figures from Africa’s most industrialised economy.
At 0634 GMT the rand traded at 17.6550 against the dollar , down about 0.2% on Monday’s close.
Global investor focus is mainly on the Federal Reserve’s annual symposium where Fed Chair Jerome Powell is due to speak on the economic outlook and the central bank’s policy framework.
ETM Analytics said the risk-sensitive rand will likely take cues from this meeting as it currently remains range-bound against the dollar.
“The USD-ZAR started the week on the defensive, which looks set to continue,” the note said.
“Expectations are for central banks to adopt a more dovish stance, but with some conservatism as the full effects of the tariffs remain unknown. Early signs that the global economy may be slowing require confirmation, which will take several more months.”
Statistics South Africa will release July inflation data on Wednesday, with most analysts expecting a rise from 3.0% in June.
South Africa’s benchmark 2035 government bond was weaker in early deals, as the yield rose 1.5 basis points to 9.66%.
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