Rand stable ahead of Fed meeting

The South African rand was little changed in early trade on Tuesday as the dollar slipped ahead of key US inflation data and a Federal Reserve monetary policy meeting.

At 09:36, the rand traded at R18.62 against the dollar.

The dollar was last trading down about 0.25% at 103.300 against a basket of global currencies.

Investors’ focus this week will be the Fed’s interest rate decision on Wednesday following a two-day monetary policy meeting. The US Labour Department’s CPI report is due later on Tuesday.

In South Africa, mining production figures for April will be released at 11:30 am (0930 GMT).

The rand gained almost 1% on Monday on the back of shorter power cuts at home and reduced tensions between South Africa and the West over Russia, analysts said.

South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 0.5 basis points to 10.760%.