2023-09-20 06:23:40
The South African rand edged higher in early trade on Wednesday ahead of Consumer Price Index (CPI) data and interest rate announcements by leaders of the world’s largest economy.
At 0615 GMT, the rand traded at 18.9000 against the dollar, more than 0.1% above its previous close.
The dollar was last trading about 0.02% stronger against a basket of global currencies.
At 0800 GMT, Statistics South Africa will release consumer inflation data for August.
Analysts polled by Archyde.com forecast inflation rising 4.8 percent year-on-year, within the central bank’s target range of 3 percent to 6 percent.
The US Federal Reserve is due to announce its key interest rate decision later on Wednesday, providing guidance on the health of the world’s largest economy.
“The rand is trading solidly in tight ranges with little risk today, but tonight’s Fed is expected to give it new direction over several weeks,” Rand Merchant Bank analysts said in a research note.
The focus will be on the Fed’s tone and economic forecasts, RMB said, adding that a hawkish tone would weaken the rand.
On Thursday, the South African Reserve Bank will announce its decision on the main interest rate.
South Africa’s benchmark 2030 government bond was slightly weaker in early trading, with the yield up 1 basis point at 10.495%.
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