Rand steady, eyes on US presidential debate

The rand held steady versus the dollar early on Tuesday as financial markets braced for the first US presidential debate, and traders awaited local second-quarter unemployment statistics.

At 0610 GMT, the rand traded at R17.04 per dollar, not far off its close of R17.05 on Monday.

The market was looking towards Tuesday’s debate in the United States between President Donald Trump and challenger Joe Biden, for hints of their policy plans.

Markets are also braced for South Africa’s second-quarter labour force survey due at 0930 GMT, which is expected to show a jump in the unemployment rate due to the impact of the coronavirus lockdown.

The unemployment rate hit a record high of 30.1% in the first quarter, highlighting weakness in the economy even before it was battered by the Covid-19 pandemic.

In fixed income, the yield on the benchmark bond due in 2030 was down 2.5 basis points to 9.52%.