The South African (SA) Rand was muted in early trade on Tuesday, in line with most emerging market peers, as traders counted down to the United States Federal Reserve’s policy meeting later this week.
The Rand traded at 17.05 against the Dollar, little changed from its previous closing level.
The greenback, which is currently flat against a basket of currencies, firmed on Monday, while SA’s risk-sensitive currency weakened about 0.6%, edging above the R17.00 Rand per Dollar mark in a cautious corrective move.
Andre Cilliers, Currency Strategist at TreasuryONE, said he expects the Rand to consolidate within a range of R16.95 to R17.10 ($1) for now.
Domestically-focused traders will keep tabs on retail sales on Wednesday along with mining and manufacturing production figures on Thursday for clues on the health of Africa’s most industrialised economy.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.5% in early trade.
SA’s benchmark 2035 government bond also weakened, as the yield rose four basis points to 8.495%.
–Reuters–
