Rand firms as risk sentiment improves

The rand firmed in early trade on Tuesday, as risk sentiment improved on rising expectations that the US Federal Reserve would stop hiking interest rates.

At 0641 GMT, the rand traded at R18.33 against the dollar.

The dollar index was last trading down around 0.15% against a basket of major currencies.

Around 0700 GMT, the central bank will publish its leading indicator, which collects data including vehicle sales, business confidence and money supply in Africa’s most industrialised nation.

Investor focus will also be on inflation figures due on Wednesday and an interest rate decision by the South African Reserve Bank on Thursday.

Global markets are awaiting minutes of the US Federal Reserve’s last meeting later in the day for cues on where rates are headed.

South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 7 basis points to 9.985%.