Rand gains as dollar dips

The rand gained against the dollar in early trade on Tuesday, as the US currency dipped on less aggressive rate hike bets.

At 0615 GMT, the rand traded at R15.81 against the dollar, around 0.2% higher than its previous close.

The dollar index, which measures the currency versus six rivals, fell slightly to 103.94.

Some of the heat has come out of bets on US interest rate rises, with the peak in the Federal Reserve’s benchmark funds rate now seen hovering around 3.5% next year rather than 4% or above, but the dollar has not yet fallen far from lofty peaks.

Later in the day local investors will look to the South African Reserve Bank’s quarterly bulletin for data on foreign direct investment and portfolio investment flows.

Separately the statistics agency will release formal sector employment data for the first quarter.

The government’s benchmark 2030 bond was steady in early deals, with the yield up 0.5 basis points to 10.330%.