South African rand steady with local economic data, Fed decision in focus
JOHANNESBURG: The South African rand was steady in early trade on Monday as investors awaited a series of domestic economic data releases and the Federal Reserve’s policy decision later this week. At 0602 GMT, the rand traded at 16.6125 against the dollar , little changed from its previous close. Investors will track a series of month-end domestic economic data releases, including money supply,…
Johannesburg - The South African rand remained relatively stable in early trading on Monday as market participants awaited a mix of domestic economic data releases and the Federal Reserve’s decision on monetary policy later in the week. At 0602 GMT, the currency was trading at 16.6125 against the US dollar, showing minimal movement from its previous close.
Investors will closely monitor a range of month-end domestic economic indicators, including money supply, private sector credit, trade balance, and budget balance. Furthermore, September producer inflation data will also be of interest. In addition to these domestic releases, traders are eagerly anticipating the Federal Reserve’s policy meeting scheduled for October 28.
While markets currently expect the central bank to maintain interest rates unchanged this week, the likelihood of a rate hike in December is estimated at 75% according to CME’s FedWatch Tool. Similar to other risk-sensitive currencies, the South African rand often reacts to global factors, with a particular focus on US monetary policy, as well as domestic economic data.
The yield on South Africa’s benchmark 2035 government bond remained steady in early trading, sitting at 8.635%.
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