Rand falls in anticipation of retail sales figures

The rand was weaker in early trade on Wednesday ahead of the release of retail sales data locally and in the US, which could provide markets with fresh direction.

At 7.17am GMT, the rand traded at 18.2550 against the dollar , about 0.2% weaker than its previous close.

The dollar last traded about 0.1% stronger against a basket of major currencies.

The rand jumped on Tuesday as softer-than-expected US consumer inflation data boosted expectations that the US Federal Reserve might be done with interest-rate hikes.

Like other risk-sensitive currencies, the rand often takes its cues from global drivers such as US monetary policy.

Investors will look to US retail sales and producer price inflation data later on Wednesday for further clues as to the state of the economy.

“Given the mood, the market would surge on any softening in the data,” Rand Merchant Bank analysts said in a briefing.

Analysts polled by Reuters predict a 0.1% rise in retail sales year-on-year.

SA’s benchmark 2030 government bond was stronger in early deals, with the yield down four basis points to 10.195%.

Reuters