JOHANNESBURG: The South African rand was little changed in early trade on Monday against a weaker dollar as recent US economic data fuelled expectations that the Federal Reserve is done hiking interest rates.
At 0530 GMT, the rand traded at 18.2525 against the dollar , near the Friday close of 18.2575.
The rand has jumped more than 2% against the greenback since the start of November. The dollar last traded around 0.06% weaker against a basket of global currencies.
“More evidence that the US will experience a soft landing has created a perfect environment for the rand, with the USD weaker,” said Rand Merchant Bank analysts in a morning briefing.
South African rand weakens ahead of mid-term budget, Fed rate decision
On Friday, the rand jumped as US Treasury yields fell and data out of the US showed fewer than expected jobs had been created in October, boosting hopes the Fed is done raising interest rates.
Interest rate cuts in the world’s biggest economy could come as soon as May, RMB analysts added.
Like other risk-sensitive currencies, the rand often takes cues from global drivers like US monetary policy in the absence of local drivers.
South Africa’s benchmark 2030 government bond was flat in early deals at 10.310%.
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