The South African (SA) Rand weakened on Thursday as traders assessed the United States (US) Federal (Fed) Reserve’s rate decision and awaited local data releases, including formal sector employment, mining and manufacturing reports, and a business confidence index.
The Rand traded at 16.97 against the Dollar , roughly down 0.4% from previous session’s close, while the greenback was slightly stronger against a basket of currencies.
The Fed delivered a 25-basis-point rate cut in a divided vote on Wednesday but signalled that borrowing costs may not fall further as it waits for clearer signs of a cooling labour market and inflation that “remains somewhat elevated.”
Like other risk-sensitive currencies, the rand often takes its cues from global drivers such as US policy and economic data in addition to domestic releases.
Statistics SA is set to publish mining output on Thursday, formal sector employment data and manufacturing production, which will all offer traders clues on the health of Africa’s most industrialised economy.
For insight on private sector sentiment, the SA Chamber of Commerce and Industry will release its business confidence index.
SA’s benchmark 2035 government bond firmed in early deals, as the yield fell 5 basis points to 8.465%.
–Reuters–
