The South African (SA) Rand weakened in early trade on Tuesday, pressured by a firmer United States (US) Dollar ahead of Central bank data expected to shed light on the economic outlook.
The Rand traded at 16.4525 against the Dollar, down 0.3% from its previous close.
The Dollar held firm as traders positioned for a more hawkish Federal Reserve, while oil prices edged lower as investors looked for signs of progress in restoring crude flows through the Strait of Hormuz after US and Iran peace talks.
The US waived sanctions on Iran for 60 days from Monday after the first talks under a nascent peace deal, while officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region.
SA Reserve Bank will publish the country’s leading business cycle indicator for April, which includes data on vehicle sales, business confidence, money supply and other factors.
Later in the week, investor attention will shift to producer inflation data for further clues on the health of Africa’s most industrialised economy.
SA’s benchmark 2035 government bond was weaker in early deals, with the yield up 4 basis points to 8.32%.
–Reuters–
