Rand firms as dollar retreats ahead of US inflation data

The rand firmed on Wednesday, as the dollar weakened on global markets with investors awaiting US consumer price data due this week.

At 09:21, the rand traded at R16.99 against the dollar.

The dollar index, which measures the greenback against six rivals, was last down 0.097% at 103.15.

“For now, the rand is struggling to find the catalyst to drive the USD-ZAR through strong technical support,” ETM Analystics said in a research note.

Markets will look towards US inflation data due on Thursday for cues on the likely path of rates this year after Federal Reserve Chairman Jerome Powell avoided speaking about rate hikes at a conference on Tuesday.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 9.840.