The South African (SA) Rand was steady in early trade on Wednesday, with caution prevailing among investors ahead of key United States (US) inflation data that could set the tone for the commodity-linked currency.
The Rand traded at 15.9276 against the Dollar, unchanged from its previous close.
The Dollar remained pinned in the narrow trading range it has sat in for the past week against most major peers ahead of the release of the US Personal Consumption Expenditures (PCE) price index for July, the Federal Reserve’s preferred inflation gauge.
Investors are also looking ahead to the Federal’s annual Jackson Hole symposium later this week for further clues on the US central bank’s policy outlook.
“The Rand is benefiting from a lower Dollar and steady to better commodity prices,” Adam Phillips of Umkhulu Treasury said.
In the absence of major domestic economic data, the Rand, like other risk-sensitive currencies, tends to be driven by global factors, including US economic data releases and policy developments.
SA’s benchmark 2035 government bond was slightly firmer in early deals, as the yield fell 1 basis point to 8.435%.
