JOHANNESBURG: South Africa's rand weakened against the dollar before the release of expected lower inflation data on Wednesday, with investors keen to see what effect the number could have on an interest rate decision in the coming session.
Offshore, the focus is on the US Federal Reserve's monetary policy-setting meeting later in the day, with expectations that the bank will signal tighter policy sooner than expected.
The rand traded at 10.9275 to the dollar at 0651 GMT, 0.2 percent weaker than a 10.9080 close in New York on Tuesday.
Statistics South Africa will release August inflation data at 0800 GMT.
Analysts have forecast 6.2 percent year-on-year CPI, slowing from 6.3 percent, with inflation likely to have already peaked in May. Retail sales are due at 1100 GMT.
Sales growth is expected to have risen to 0.3 percent in July, from a flat reading in June.
Later in the session focus will turn to the Fed's latest guidance on interest rates when it concludes its two-day meeting where it is expected to discuss the timing of an increase, which will pressure emerging markets.
Yields on government bond were down 3 basis points to 8.235 percent on the benchmark 2026 issue.
Comments
Comments are closed for this article.