Rand steady in start of rate decision week

The rand was steady in early trade on Monday, ahead of local and international interest rate announcements this week.

At 0718 GMT, the rand traded at R18.98 against the dollar.

The dollar last traded near its previous close of 105.260 against a basket of global currencies.

The South African Reserve Bank (Sarb) will announce its interest rate decision on Thursday and provide clues on the country’s future rate path.

“The Sarb is expected to keep rates unchanged but remain hawkish on the back of concerns of an uptick in inflation on the back of the higher fuel price,” said Andre Cilliers, currency strategist at TreasuryONE.

The US Federal Reserve is also expected to keep rate unchanged when it meets on Wednesday, he added, “but with a hawkish outlook given the higher oil price and higher inflation numbers”.

Shares on the Johannesburg Stock Exchange opened lower, with the blue-chip Top 40 index last trading down more than 0.6%.

South Africa’s benchmark 2030 government bond was marginally weaker in early deals, with the yield up 0.5 basis points to 10.480%.