The South African (SA) Rand edged up in early trade on Tuesday as investors awaited domestic mining production data, while markets looked ahead to US inflation figures for fresh signals on the Federal Reserve’s interest-rate trajectory.
The Rand traded at 16.5150 against the Dollar, about 0.2% firmer than its previous close.
Statistics SA is due to publish August mining production data, with economists expecting another contraction after output fell 7.5% year on year in July.
“We expect mining production to remain in contraction, mainly reflecting elevated domestic input costs, softer commodity prices in some key segments and subdued global demand,” Nedbank economists said in a note.
The Dollar index was down, lending support to the rand, while oil prices fell as traders assessed supply risks following attacks on Saudi Arabia and weighed the prospect of additional diesel supplies from Russia.
Investors are also focused on Wednesday’s United States (US) Consumer Price Index report, one of the last major data releases before the Federal Reserve’s late October policy meeting.
Like other risk-sensitive currencies, the Rand often takes its cues from global factors, particularly US monetary policy, alongside domestic economic data.
SA’s benchmark 2035 government bond was firmer in early deals, as the yield fell 3 basis points to 8.785%.
–Reuters–
