The South African (SA) Rand edged up in early trade on Thursday ahead of the release of domestic manufacturing, current account and mining figures, while traders also awaited United States (US) inflation data that could shape the Federal Reserve’s interest-rate path.
The Rand traded at 16.0250 against the Dollar, about 0.2% stronger than its previous close.
Statistics SA is scheduled to publish July mining and manufacturing data later on Thursday, with analysts polled by Reuters expecting output to have fallen by 2.8% and 1.6% respectively.
“We expect weakness in mining and manufacturing production to persist into July, given high input costs driven primarily by ongoing structural constraints and exacerbated by higher fuel prices caused by the US and Iran conflict,” Nedbank economists said in a note.
SA’s Central bank will release second-quarter current account data. Analysts polled by Reuters forecast a deficit of 0.4%.
The greenback traded flat against a basket of currencies, as traders eyed US producer price index data due and consumer inflation figures scheduled for release on Friday.
The Federal will hold its interest rate steady at its September 15-16 meeting and for the rest of this year, again defying market expectations for a series of hikes, according to a majority of economists in a Reuters poll.
In common with other risk-sensitive currencies, the rand often takes cues from global drivers such as US economic indicators and monetary policy, in addition to domestic economic data.
SA’s benchmark 2035 government bond weakened in early deals, as the yield rose 5.5 basis points to 8.675%.
–Reuters–
