JOHANNESBURG: The South African rand drifted stronger in early trade on Tuesday, but analysts said they struggled to see a clear trend for the currency before a raft of upcoming local and international data releases.
At 0730 GMT, the rand traded at 18.4500 against the dollar, around 0.7% stronger than its previous close.
Local data releases this week include July money supply , private sector credit and budget numbers on Wednesday, and July producer inflation and trade figures on Thursday.
ETM Analytics said those releases from the middle of the week plus the build-up to US non-farm payrolls data on Friday meant the local market had a lot to contend with.
“It is difficult to pick any clear direction in these early trading sessions of the week,” ETM Analytics added. “Investors are urged to keep directional position-taking somewhat limited to avoid any unexpected volatility.”
South African rand edges up at start of data-filled week
On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about 0.1% weaker than its closing level on Monday.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 3.5 basis points to 10.125%.
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