malvernmugadzikwa
Reuters
The rand edged lower in early trade on Wednesday, as investors awaited US inflation data to gauge the pace of interest rate hikes.
At 0649 GMT, the rand traded at R16.63 against the dollar, down 0.15 percent from its previous close.
The dollar index, which measures the currency against six rivals, was steady as traders remained cautious ahead of key data due at 1230 GMT.
Economists expect year-on-year headline inflation to be running at 8.7 percent, a slight retreat from June’s 9.1 percent figure.
A high US inflation print, following last week’s strong jobs numbers, will likely push the Federal Reserve to continue with aggressive rate hikes.
“Any deviation from the 8.7 percent estimate could see some volatility in markets this afternoon,” Andre Cilliers, currency strategist at TreasuryONE, said in a research note.
Like most emerging market currencies, the rand is susceptible to dollar moves and often takes cues from global drivers in the absence of major local economic data points.
The government’s benchmark 2030 bond was slightly lower in early deals, with the yield up 2 basis points to 10.280 percent.
Online Reporter