Rand on back foot as US dollar strengthens

The South African rand was on the back foot in early trade on Monday, as the dollar firmed on investor bets that the US Federal Reserve would keep monetary policy tight for longer.

At 08:10, the rand traded at R17.94 against the dollar.

The dollar was up more than 0.1% against a basket of global currencies, with market attention firmly pinned on Tuesday’s US consumer price report and its implications for the Fed’s interest rate trajectory.

No major South African economic data releases are due on Monday, so the rand will probably track global market moves.

South Africa’s latest consumer price report is due on Wednesday, when retail sales figures will also be published.

The government’s benchmark 2030 bond was slightly weaker in early deals, with the yield rising 2.5 basis points to 9.890%.