South African rand extends losses before local economic releases
- The rand traded at 16.43 against the dollar , about 0.1% softer than its previous close
The South African rand weakened as higher oil prices weighed on sentiment, with investors awaiting key domestic economic data on foreign investment, household finances, and employment.
- Higher oil prices and Middle East supply concerns.
- South African Reserve Bank's quarterly bulletin.
- Formal sector employment data and household finances.
JOHANNESBURG: The South African rand extended the previous session’s losses in early trade on Tuesday as higher oil prices weighed on sentiment, while investors waited for domestic economic data for clues on the health of Africa’s largest economy.
At 0625 GMT the rand traded at 16.43 against the dollar , about 0.1% softer than its previous close.
The US dollar was steady against a basket of currencies, while oil prices rose for a second successive session amid lingering concern over Middle East supply disruption.
The South African Reserve Bank is expected to release its quarterly bulletin at around 0800 GMT, offering insight into second-quarter foreign direct investment and portfolio flows.
The report will also offer a closer look at household finances, which Nedbank economists said appear to have remained resilient despite persistent concerns about the ongoing energy shock.
Statistics South Africa is due to release formal sector employment data, excluding agriculture, at around 0930 GMT.
South Africa’s benchmark 2035 government bond strengthened in early deals, as the yield fell 2.5 basis points to 8.89%.