admin
JOHANNESBURG. — South Africa’s rand slipped back early yesterday, after strong gains a day earlier when the dollar retreated on US inflation data.
At 8:45am, the rand traded at R15,3475 against the dollar, roughly 0,3 percent weaker than its previous close.
The rand advanced more than 1 percent on Wednesday, as traders interpreted a rise in US consumer prices in December as insufficient to alter the Federal Reserve’s plans to speed up policy normalisation.
“The local unit has benefited significantly from the USD’s retreat, both directly and indirectly through the rise in commodity prices,” analysts at ETM Analytics said in a note, adding Wednesday was the first time the rand had closed below R15,5 to the dollar since mid-November.
There have been relatively few domestic economic data releases this week, so the rand has tended to track global factors, especially the outlook for US monetary policy.
Next week the data calendar is slightly fuller, with December consumer inflation, and November mining and retail sales figures.
On January 27, the South Africa Reserve Bank announced its first interest rate decision of 2022.
The government’s benchmark 2030 bond was also slightly weaker in early deals, with the yield rising 1 basis point to 9,39 percent. – Reuters
Online Reporter