JOHANNESBURG: The South African rand slipped in early trade on Thursday, as the dollar rebounded on data conflicting with a narrative of retreating US inflation leading to slower interest rate hikes.
At 0625 GMT, the rand traded at 17.3000 against the dollar, 0.2% weaker than its previous close.
US October retail sales rose 1.3%, compared with economists’ expectations for 1.0%, a healthy signal but one that dented hopes that the Federal Reserve would scale back rate hikes.
The South African currency has mainly taken its cue from global drivers recently, rallying strongly last week after a lower-than-expected US inflation reading.
South African rand steady; focus on ratings and retail sales this week
The government’s benchmark 2030 bond was little changed in early deals, with the yield up 0.5 basis point at 10.350%.
On Friday, investor attention will shift to scheduled reviews of South Africa’s sovereign credit ratings by S&P Global and Moody’s.