The South African rand remained subdued in early trade on Tuesday as a stronger dollar prompted investors to steer clear of riskier assets, while local traders held back ahead of important domestic economic data due later this week.
At 0639 GMT, the rand traded at 17.2125 against the dollar, about 0.3% weaker than its previous close.
“The ZAR lost some ground overnight, with the gold price retreating to close to $4,000 and also on the back of U.S. operators reducing their hopes of a U.S. cut next month,” said Adam Phillips, treasury specialist at Umkhulu Treasury.
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Gold prices fell for a fourth consecutive session on Tuesday, pressured by a firmer dollar and diminished prospects of a U.S. interest rate cut next month, as seen on Reuters.
Like other risk-sensitive currencies, the rand often takes cues from global factors such as U.S. policy and economic data.
Domestically, traders are awaiting figures on October consumer inflation and September retail sales, due on Wednesday, followed by the central bank’s interest rate decision on Thursday for insights into the health of Africa’s largest economy.
Economists polled by Reuters expect the Monetary Policy Committee to reduce its main lending rate by 25 basis points to 6.75%.
South Africa’s benchmark 2035 government bond was flat in early trading, with the yield at 8.63%.
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Image Credit: Reuters
