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SOUTH Africa’s rand firmed slightly against the dollar early on Tuesday, edging back towards five-month highs hit on Friday as investors positioned for a slew of domestic and foreign economic data.
At 0645 GMT, the rand traded at 14,2550 versus the dollar, up 0,18 percent from Monday’s New York close. The rand hit 14,1165 n Friday, its strongest since November 25, lifted by a broadly weaker dollar, strong trade data and a court ruling against scandal-beset President Jacob Zuma.
Rand Merchant Bank analyst Isaah Mhlanga said markets were focusing on upcoming data, including the manufacturing Purchasing Managers Index (PMI) and vehicle sales figures for April at home, as well as US trade, durable goods orders, services PMI and non-farm payroll number.
“Across the Atlantic, this week’s data is the first to provide an indication as to the direction the Fed’s interest rate policy will take come June,” Mhlanga said in a note.
South African stocks wereset to open higher at 0700 GMT, with the JSE securitiesexchange’s Top-40 futures index up 0,44 percent. In fixed income, the yield for the benchmark bond due in 2026 was up 1.5 basis points to 8,99 percent. – Reuters.
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