Rand slides as investors await cues in Fed chief’s speech

The rand weakened in early trade on Tuesday, as investors looked for more clarity on the outlook of the Fed’s rate-hike path.

At 08:52, the rand traded at R16.97 against the dollar.

Markets were awaiting a speech by Fed Chair Jerome Powell later on Tuesday and US inflation data on Thursday, which could give cues on the likely path of rates this year.

“US inflation is expected to drop sharply, which could hold implications for US monetary policy,” ETM Analytics said in a research note.

“A larger-than-expected drop might quickly soften expectations for further hikes and detract from the dollar,” ETM added.

The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 9.730%.