The South African (SA) Rand edged up in early trade on Wednesday as investors looked ahead to United States (US) inflation data later in the day for signals on the Federal Reserve’s next monetary policy moves.
The Rand traded at 16.4550 against the Dollar, about 0.2% firmer than its previous close.
The Dollar index, which measures the greenback against a basket of currencies, fell to 102.1, down 0.35% on Tuesday.
Investor attention was firmly on the US Consumer Price Index report, one of the last major economic releases before the Fed’s October 27-28 policy meeting.
Traders see a 77% chance that the Fed will leave rates unchanged later this month, up from 51% a month ago, while pricing in about 75 basis points of tightening by late 2027, CME Group’s FedWatch Tool showed.
With no major domestic data due, the rand takes its cue from global developments, particularly US economic indicators and geopolitical events.
SA’s benchmark 2035 government bond was also firmer in early deals, as the yield fell 8 basis points to 8.68%.
–Reuters–
