JOHANNESBURG (Reuters) – The South African rand gained early on Monday as markets awaited U.S. President-elect Donald Trump’s inauguration and policy announcements ahead of a week packed with domestic data releases.
At 0655 GMT the rand traded at 18.6925 against the U.S. dollar, about 0.5% stronger than its previous close. The dollar last traded about 0.2% weaker against a basket of currencies.
Global markets will be looking to Trump’s policy announcements on Monday at the start of his second presidency for clarity on his administration’s fiscal stance.
“Trump’s policy announcements and U.S. data will drive market sentiment, with the rand poised for further volatility depending on global developments,” said Andre Cilliers, currency strategist at TreasuryONE.
Over the rest of the week domestic investors will focus on South Africa’s November mining production data on Tuesday, the December consumer inflation reading on Wednesday and November retail sales figures on Thursday.
South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 3 basis points at 9.18%.
(Reporting by Tannur Anders; Editing by David Goodman)
