Rand stable in early trade

Published Jun 14, 2016

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Johannesburg - South Africa's rand steadied early on Tuesday, before the release of current account data later in the day and a Federal Reserve monetary policy meeting this week.

Read also: Rand remains vulnerable to risk aversion

At 06h48 GMT, the rand traded at 15.1725 per US dollar, largely unchanged from its New York close on Monday.

“ZAR is likely to be vulnerable to foreign sentiment going into US Fed meeting tomorrow, although large surprise on South African current account data today may provide some momentum,” NKC African Economics said in a note.

Uncertainty over this week's Fed meeting has weighed on markets, though the US central bank is widely expected to leave rates unchanged after the much weaker-than-expected May nonfarm payrolls report.

The central bank is due to release first-quarter current account data at 08h00 GMT. The deficit widened in the fourth quarter to 5.1 percent of gross domestic product; an unexpectedly large swing either way could move the rand as well.

Stocks were set to open lower at 07h00 GMT, with the JSE securities exchange's Top-40 futures index down 0.52 percent.

In fixed income, yield for the benchmark instrument due in 2026 added 1.5 basis points to 9.13 percent.

REUTERS

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