The rand was flat in early trade on Tuesday, as investors waited for some of the week’s big events, including a US interest-rate decision and a possible trade deal between the world’s two biggest economies.
At 0743 GMT the rand traded at 17.2675 against the dollar ZAR=D3, about 0.2% lower than its previous close.
Economists have said the US Federal Reserve is poised to reduce interest rates by 25 basis points at its meeting this week.
“The Fed will influence inflation and interest rate expectations and could materially impact how the USD trades. The US-China trade talks could influence global risk appetite, while all the domestic data hold implications for domestic monetary policy and the impact that will have on the ZAR’s carry attractiveness,” said ETM Analytics in a research note.
Domestically-focused traders will look to money supply ZAM3=ECI and private sector credit ZACRED=ECI data, trade ZATBAL=ECI and budget balance ZABUD=ECI figures and producer inflation numbers this week for clues on the health of Africa’s largest economy.
On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was flat.
South Africa’s benchmark 2035 government bond ZAR2035= was also steady, with the yield at 8.885%.
Reuters
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