JOHANNESBURG: The South African rand jumped against a weaker dollar early on Monday as investors awaited local manufacturing data later in the day and US consumer price index (CPI) data on Wednesday.
At 0621 GMT, the rand traded at 19.0300 against the dollar , 0.55% stronger than its previous close.
The dollar last traded around 0.2% weaker against a basket of global currencies.
“(The) rand has rolled over, now gaining against all the majors and has switched from underperformer to outperformer,” Rand Merchant Bank analysts said in a research note. At 1100 GMT, Statistics South Africa will release manufacturing output numbers for July.
“A quiet start to the week, but risks are elevated midweek, starting with US CPI on Wednesday, followed by ECB rate announcement and press conference on Thursday,” RMB analysts added.
Inflation data out of the US could give clues on the Federal Reserve’s interest rate path before it convenes next week and might influence the risk-sensitive rand.
South Africa’s benchmark 2030 government bond was almost unchanged in early deals, with the yield at 10.380%.
Comments
Comments are closed for this article.