South African rand holds steady as traders await domestic news
- The rand traded at 15.9975 against the dollar , little changed from its previous close
JOHANNESBURG: The South African rand held steady against a weak dollar in early trade on Wednesday as investors avoided taking large positions ahead of domestic economic data that could offer further clues on the health of Africa’s largest economy.
At 0658 GMT the rand traded at 15.9975 against the dollar , little changed from its previous close.
The currency came under pressure on Tuesday after data showed South Africa’s economy contracted in the second quarter for the first time in nearly two years, weighed down mainly by the impact of the Iran war.
It has since pared the losses supported by U.S. dollar weakness and firmer gold prices as South Africa is one of the world’s largest exporters of the precious metal.
The focus will turn to current account, mining and manufacturing figures on Thursday.
Investors also await US producer price index data on Thursday and consumer price index figures on Friday.
In common with other risk-sensitive currencies, the rand often takes cues from global drivers such as US economic indicators, in addition to domestic economic data.
South Africa’s benchmark 2035 government bond was weaker in early deals, as the yield rose 3 basis points to 8.65%.