JOHANNESBURG: South Africa’s rand was marginally stronger in early trade on Tuesday, with market attention this week likely to hinge on local purchasing managers’ index (PMI) surveys and a US Federal Reserve interest rate meeting.
At 0550 GMT, the rand traded at 18.3725 against the dollar, around 0.1% stronger than its previous close.
The US currency was last down about 0.1% against a basket of currencies.
PMI surveys for the manufacturing sector and whole economy will give investors further insight into the health of Africa’s most industrialised economy.
The Fed is expected to deliver another 25 basis point rate hike on Wednesday.
South African rand slightly firmer, producer inflation in focus
Investors will focus on whether the US central bank indicates that it expects to pause rate increases after May, or if it keeps alive the possibility of another hike in June or later.
South Africa’s benchmark 2030 government bond was also slightly stronger in early deals, the yield down 0.5 basis points to 10.175%.
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