Market News
South African rand tracks subdued emerging market assets as Fed meeting nears - REUTERS
BY Sfundo Parakozov
JOHANNESBURG, Dec 9 (Reuters) – The South African rand was muted in early trade on Tuesday, in line with most emerging market peers, as traders counted down to the U.S. Federal Reserve’s policy meeting later this week.
At 0806 GMT, the rand traded at 17.05 against the dollar, little changed from its previous closing level.
MSCI’s gauge of emerging market currencies was flat as caution prevailed ahead of an expected rate cut by the Fed, with investors looking for clearer signals on the monetary policy outlook through 2026.
The greenback, which is currently flat against a basket of currencies, firmed on Monday, while South Africa’s risk-sensitive currency weakened about 0.6%, edging above the 17.00 rand per dollar mark in a cautious corrective move.
Andre Cilliers, Currency Strategist at TreasuryONE, said he expects the rand to consolidate within a range of 16.95 to 17.10 for now.
Domestically-focused traders will keep tabs on retail sales data on Wednesday along with mining and manufacturing production figures on Thursday for clues on the health of Africa’s most industrialised economy.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.5% in early trade.
South Africa’s benchmark 2035 government bond also weakened, as the yield rose four basis points to 8.495%.
