Rand weaker, focus on Fed minutes and retail sales data

The rand weakened in early trade on Wednesday as the dollar strengthened against most major peers, with the market awaiting domestic retail sales figures and minutes from the US Federal Reserve’s latest policy meeting.

At 0614 GMT, the rand traded at 14.21 per dollar, 0.32% weaker than its New York close on Tuesday.

“Current levels are likely to provide opportunity for dollar buyers, but if the rand consolidates at these levels, an attempt at the 14.00 level and beyond would seem likely,” Nedbank analysts said in a note. “However, the release of the FOMC minutes tonight are likely to be key.”

Market participants will be looking for clues on the dollar’s direction and the path ahead on US interest-rate hikes from minutes of the Federal Reserve’s September meeting, due for release later on Wednesday.

Markets will also closely watch South Africa’s August retail sales data due at 1100 GMT for fresh clues on the health of the economy.

In fixed income, the yield on the benchmark instrument due in 2026 was up 1 basis point to 9.17% in early trade.