Rand firms ahead of busy week for data
Share this article:
THE rand began the week on firmer footing against a broadly flat dollar ahead of a slew of domestic economic data this week that should give insights into the health of the economy.
At 8.05am local time the rand traded at 14.9000 against the dollar, 0.3 percent firmer than its previous close.
Focus this week is on various economic data, including August credit numbers, producer price inflation and trade figures, all due on Thursday.
The week is also packed with speeches from US Federal Reserve policymakers led by chairperson Jerome Powell on Tuesday and Wednesday, where investors will be looking for cues on the US central bank’s rate increase path.
A pair of Federal Reserve policymakers said on Friday that they felt the US economy was already in good enough shape for the central bank to begin to withdraw support.
Riskier currencies, such as the rand, thrive on US interest rates remaining low because they benefit from the interest rate differential that increases their appeal for so-called carry trade.
Government bonds weakened in early deals, with the yield on the 2030 instrument adding 9.5 basis points to 9.205 percent. | REUTERS