JOHANNESBURG (Reuters) -The South African rand was stable on Monday as investors awaited inflation data later this week for hints on the country’s future interest rate path.
At 1502 GMT, the rand traded at 18.2975 against the dollar, not far from its previous close of 18.2925.
South Africa’s inflation figures for June are due on Wednesday and may give clues on the interest rate outlook in Africa’s most industrialised economy.
On Sunday, U.S. President Joe Biden ended his reelection bid and endorsed Vice President Kamala Harris to replace him as the Democratic candidate in the November election against Republican Donald Trump.
“Harris’s emergence as the likely Democratic candidate could introduce uncertainty, affecting market sentiment,” said Andre Cilliers, currency strategist at TreasuryONE.
The risk-sensitive rand often takes its cues from global drivers such as U.S. political developments in addition to domestic factors.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed 0.75% higher.
South Africa’s benchmark 2030 government bond was stronger, with the yield falling 8 basis points to 9.57%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Jacqueline Wong and Christina Fincher)
