Rand extends losses as dollar firms

The rand weakened early on Wednesday against a stronger dollar, continuing its decline since the start of the week as traders awaited US inflation data due on Thursday.

At 0652 GMT, the rand traded at R18.74 against the dollar.

The dollar was last up around 0.13% against a basket of global currencies.

Investors’ focus this week is the December US inflation reading, which is expected to provide some clarity on the Federal Reserve’s monetary policy outlook.

In the absence of local economic data, the rand often takes its cues from global factors such as US monetary policy.

The South African currency has had a lacklustre start to the year, after losing more than 7% against the dollar in 2023.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 3 basis points to 9.750%.