South African rand opens weaker as dollar firms

JOHANNESBURG: The South African rand was weaker in early trade on Monday as the US dollar edged higher on global markets.

In a thin week for domestic economic data, analysts say the rand is likely to take its cues from global drivers such as the outlook for US monetary policy.

At 0610 GMT the rand traded at 16.2500 against the dollar, down more than 0.3% on its previous close.

The dollar was up about 0.1% against a basket of currencies as traders weighed hawkish comments by Federal Reserve policymakers against signs that US inflation may have peaked.

South African rand erases Friday’s loss; stocks rise

Fed minutes on Wednesday will be scrutinised for further clues about US interest rate trajectory.

Also on Wednesday, South Africa’s June retail sales figures will shed more light on the economy’s second-quarter performance.