JOHANNESBURG (Reuters) – South Africa’s rand was steady in early trade on Wednesday, as markets processed U.S. Federal Reserve Chair Jerome Powell’s comments on interest rate cuts and braced for an inflation reading from the world’s biggest economy later in the day.
At 0653 GMT, the rand traded at 18.5125 against the U.S. dollar, near its Tuesday closing level of 18.5075.
Powell told the U.S. Congress on Tuesday that the Fed was not in a hurry to cut interest rates and a reduction would be considered only if inflation eases or the job market weakens.
Markets will now look to January’s U.S. consumer price index print at 1330 GMT.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy in the absence of major local drivers.
South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 1 basis points at 9.16%.
(Reporting by Sfundo Parakozov; Editing by Tannur Anders and Sherry Jacob-Phillips)
