Rand weakens as dollar on front foot

The South African rand fell in early trade on Thursday, extending the previous day’s losses, as the dollar traded on the front foot on global markets.

Federal Reserve minutes on Wednesday pointed to US interest rates staying higher for longer, boosting the dollar and hurting emerging market currencies like the rand.

At 0830, the rand traded at R16.74 against the dollar, down around 0.8% on its previous close.

With no major domestic economic data releases due on Thursday, the South African currency is expected to take its cue from global drivers.

June retail sales published on Wednesday registered a surprise fall, adding to evidence the economy performed poorly in the second quarter.

Next week the data calendar is busier with July consumer and producer inflation, second-quarter unemployment and a leading business cycle indicator.

The South African government’s benchmark 2030 bond was little changed in early deals, the yield down 0.5 basis points to 10.165%.