Rand slips as US dollar steadies

The rand weakened in early trade on Tuesday, as the US dollar steadied after two days of losses.

At 09:14, the rand traded at R17.79 against the dollar.

“The rand briefly broke below R17.70 last night, but given the big move we have seen over the last two days and some good importer demand, we expect the rand to consolidate for now,” Andre Cilliers, currency strategist at TreasuryONE, said in a research note.

The dollar index, which measures the greenback against six rivals, was last up 0.181% at 110.41.

“The dollar is holding steady after two days of heavy losses as markets now focus on Thursday’s crucial US CPI data,” Cilliers added.

Investors will also keep a close eye on US midterm elections later in the day, with a Republican victory and consequently gridlock in Congress forecast. A conclusive result could take days.

The government’s benchmark 2030 bond was lower in early deals, with the yield up 2 basis points to 10.570%.