Rand firmer before local retail sales, Fed minutes

The rand was slightly firmer in early trade on Wednesday, ahead of local retail sales figures and US Federal Reserve minutes due to be released later in the day.

At 0820, the rand traded at R16.38 against the dollar, more than 0.1% stronger than its previous close.

June retail sales numbers will be published around 13:00, with analysts polled by Reuters expecting a 0.4% increase compared to a 0.1% rise in May.

Other data releases suggest South Africa’s economy struggled for momentum in the second quarter, amid damaging floods and extensive power cuts.

The Fed minutes, due around 20:00, should shed more light on the US interest rate trajectory and be a major driver across global markets.

The South African government’s benchmark 2030 bond was a touch stronger in early deals, with the yield down 2 basis points at 10.060%.