Rand flat with market focus on US inflation report
The rand was flat in early trade on Tuesday, as investor caution prevailed ahead of a closely watched US inflation report due later in the day.
At 08:30, the rand traded at R17.87 against the dollar.
Markets are looking to the US consumer price index (CPI) for further clues about the Federal Reserve’s interest rate path, a major driver of global asset prices.
US consumer prices are expected to rise 0.5% in January, according to a Reuters poll, after a revised 0.1% increase in the prior month.
South African inflation and retail sales figures will be published on Wednesday.
Economists polled by Reuters expect annual inflation to fall to 6.9% in January from 7.2% in December, and retail sales to contract 0.1% in December from growth of 0.4% in November.
South Africa’s benchmark 2030 bond was flat early on Tuesday, with the yield at 9.85%.
Later on Tuesday, the government will auction up to R3.9 billion of 2030, 2032 and 2035 bonds.
Source: moneyweb.co.za