JOHANNESBURG (Reuters) – The South African rand weakened on Tuesday ahead of local inflation data, as markets awaited clues on both domestic and U.S. interest-rate paths this week.
At 1514 GMT, the rand traded at 17.8625 against the dollar, 0.95% softer than its previous close.
Investor focus on Wednesday will be on South Africa’s July inflation print for hints on the future interest-rate path of Africa’s most industrialised economy.
Economists polled by Reuters expect South Africa’s central bank to cut interest rates for the first time in more than two years on Sept. 19.
Central bank data earlier on Tuesday showed South Africa’s leading indicator, which collects data on vehicle sales, business confidence, money supply and other factors, fell 0.4% month-on-month in June.
Globally, markets will look to U.S. Federal Reserve minutes and Chair Jerome Powell’s speech at the Jackson Hole symposium this week for indications on how much the Fed will cut interest rates this year.
Like other risk-sensitive currencies, the rand often takes cues from global drivers including U.S. monetary policy alongside local data points.
On the stock market, the Top-40 index was little-changed.
South Africa’s benchmark 2030 government bond was marginally weaker as the yield gained 1 basis point to 9.285%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Andrew Heavens and Shreya Biswas)
