Rand firms ahead of US inflation data

The rand firmed in early trade on Tuesday, as the dollar traded lower ahead of US inflation data that could show signs of easing price pressure.

At 0636 GMT, the rand traded at 17.09 per dollar, 0.18% firmer than its previous close.

The dollar index, which measures the currency against six rivals, was down 0.176% at 108.030.

“Given prevailing uncertainty around the Fed’s policy outlook, no economic data matters more these days than US inflation,” economists at ETM Analytics said in a note.

“The recent rally in risk assets suggests that the market is expecting the August data to show a continued moderation of price pressures that will all but confirm that the worst of this inflation episode is in the rear-view mirror,” they added.

Traders will also be looking at data on July mining, which will be released by Statistics South Africa at 0930 GMT.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 10.190%.

Source: moneyweb.co.za