South African rand subdued as investors eye US-Iran talks, domestic events
- The rand traded at 16.2825 against the dollar , 0.2% weaker than its previous close
JOHANNESBURG: The South African rand was subdued in early trade on Tuesday as investors awaited potential US-Iran talks and key domestic data and events later this week, including inflation figures and the central bank’s policy decision.
At 0706 GMT, the rand traded at 16.2825 against the dollar , 0.2% weaker than its previous close.
Tehran and Washington exchanged threats on Sunday, though US President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN meeting.
Traders are focused on August inflation data and the South African Reserve Bank’s policy decision, both due on Wednesday.
Economists polled by Reuters expect annual inflation to accelerate to 4.5%, while the central bank is widely expected to deliver a 25-basis-point rate hike after leaving rates unchanged at its previous meeting.
Separately, South Africa’s central bank said on Tuesday that its composite leading business cycle indicator fell 0.9% month-on-month in July.
Like other risk-sensitive currencies, the rand often takes cues from global developments, in addition to domestic economic data.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.3% in early trade.
South Africa’s benchmark 2035 government bond was also weaker in early deals, as the yield rose 2 basis points to 8.65%.