Sunday, October 6, 2024
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South Africa

South African Rand Slips as Dollar Strengthens; Key U.S. Data in Focus

U.S. economic data and Federal Reserve's rate cut expectations drive rand's movement.

In early trade on Monday, the South African rand weakened against a stronger U.S. dollar, trading at 17.8850 per dollar, marking a 0.3% decline from its previous close. The dollar’s strength, up around 0.2% against a basket of global currencies, has been attributed to anticipation of the upcoming U.S. inflation report, which could offer insights into the Federal Reserve’s expected rate cut next week.

ETM Analytics noted that the direction of currency markets this week is likely to be influenced by U.S. economic data releases. A larger-than-expected Fed rate cut could potentially improve the prospects for the risk-sensitive rand.

Local data releases this week include July’s manufacturing output figures, scheduled for Tuesday, and mining production numbers set for Thursday. Economists forecast year-on-year growth in both sectors after June’s declines, highlighting the volatile conditions in South Africa’s industrial sectors.

In the bond market, South Africa’s benchmark 2030 government bond remained unchanged in early trade, with the yield steady at 8.99%.

Vivian Akinyosoye
Vivian Akinyosoye is a seasoned journalist with a background in English Language and a Masters degree in International Law & Diplomacy. She officially began her career in journalism when she joined Channels Television Lagos Nigeria in 2000. Her work in Channels allowed her to hone her skills as a journalist laying a solid foundation for a successful career as a versatile reporter covering Human angle stories, Health, Aviation, Metrofile, Travels, Business and Finance. She served as State House Correspondent Abuja in her early years with Channels TV and has trained at the London Academy for Film, Media and TV. She also served briefly with Silverbird Television Lagos Nigeria before joining African Voices 1 Network Intl (AV1 News) where she currently serves as Lead Editor, Business & Finance.

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