Rand slips as traders await Fed chair, inflation data

The rand weakened against the dollar early on Wednesday, as investors fretted about global growth ahead of the start of US Federal Reserve Chair Jerome Powell’s two-day testimony to Congress and domestic inflation data.

At 0636 GMT, the rand traded at 16.00 against the dollar, 0.53% weaker than its previous close.

The dollar index, which tracks the greenback against six other major currencies, was 0.34% higher at 104.79.

Powell is due to start his testimony to Congress on Wednesday with investors looking for further clues about whether another 75-basis-point rate hike is on the cards in July.

Around 0800 GMT, Statistics South Africa is expected to publish May consumer price index figures.

Analysts polled by Reuters are expecting annual consumer inflation to accelerate to 6.2% from 5.9% in April, above the upper bound of the central bank’s target range of 3% to 6%.

The government’s benchmark 2030 bond was stable at 10.160%.