JOHANNESBURG (Reuters) -The South African rand weakened on Tuesday, as investors looked towards June inflation data due on Wednesday and markets watched for developments in the U.S. presidential race.
At 1500 GMT, the rand traded at 18.4025 against the dollar, about 0.9% weaker than its previous close.
“Market participants (are) sitting on the sidelines watching the U.S. presidential race unfold and also local inflation data out tomorrow,” said Rand Merchant Bank analysts in a research note.
On Sunday, U.S. President Joe Biden withdrew his bid for reelection in the November vote and endorsed Vice President Kamala Harris to face Republican Donald Trump.
Statistics South Africa will release local inflation data on Wednesday, which will give hints on the future interest rate path of Africa’s most industrialised economy.
Monetary policy has remained tight as the central bank tries to steer inflation back towards the midpoint of its 3%-6% target range.
Economists polled by Reuters expect June year-on-year inflation at 5.1%. Inflation was seen at 5.2% the month before.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed 0.24% higher.
South Africa’s benchmark 2030 government bond was stronger, as the yield fell 10.5 basis points to 9.46%.
(Reporting by Tannur Anders and Bhargav AcharyaEditing by Bernadette Baum, Alexandra Hudson)
