The South African (SA) Rand weakened in early trade on Monday, pressured by a firmer United States (US) Dollar as investors weighed what the Federal Reserve might look like under President Trump’s reported pick for chair, Kevin Warsh, while local markets awaited the release of a purchasing managers’ index (PMI).
Rand traded at 16.222 against the Dollar, about 0.4% down from Friday’s close.
“The Rand retreated quite sharply against the stronger Dollar”. The local currency, which fell by 2.5% on Friday, to close at $1 (R16.12), has opened even softer this morning as gold drops a further 5.0%,” said Andre Cilliers, Currency Strategist at TreasuryONE in a research note.
Like other risk-sensitive currencies, the Rand often takes cues from global drivers such as US policy in addition to local factors.
An Absa PMI survey is set to be released and will shed light on manufacturing conditions in Africa’s most industrialised economy.
SA manufacturing sentiment fell in December to its lowest level for 2025, driven by steep declines in inventories and employment sub-indices.
Investors will then turn their focus to vehicle sales, data for January due, which will give a snapshot of consumer demand for big-ticket items.
SA’s benchmark 2035 government bond was also weak in early deals, as the yield rose 7 basis points to 8.105%.
–Reuters–
