The South African (SA) Rand weakened in early trade on Thursday as declines in gold and platinum prices weighed on the commodity-linked currency, while investors looked ahead to local producer inflation data due later in the day.
The Rand traded at 16.65 against the Dollar, about 0.4% weaker than its previous close.
SA’s key export commodities came under pressure, with gold falling nearly 1% and platinum dropping 1.5% as investors assessed signals from the United States (US) Federal Reserve and Chair Kevin Warsh after policymakers left interest rates unchanged.
Data released by the SA Reserve Bank on Thursday showed growth in broad money supply was 7.93% year-on-year in September, down from 8.89% in August, while private-sector credit growth was 6.23%, down from 7.47%.
Investors’ attention now turns to September producer price inflation figures. Economists polled by Reuters expect producer inflation to accelerate to 5.7% year-on-year from 5.0% in August.
Market participants will also monitor a batch of month-end economic releases on Friday, including trade balance and budget balance data, for further clues on the health of the economy.
SA’s benchmark 2035 government bond was firmer in early deals, as the yield fell 2.5 basis points to 8.56%.
–Reuters–
