JOHANNESBURG: The South African rand was little changed in early trade on Monday, with analysts saying credit rating reviews and retail sales data would be among the main domestic drivers this week.
At 0710 GMT, the rand traded at 17.2725 against the dollar, around 0.1% weaker than its closing level on Friday.
The rand rallied last week, gaining more than 3% against the dollar as investors piled into riskier assets after a lower-than-expected US inflation reading fostered hopes for less aggressive interest rate hikes from the Federal Reserve.
This week, ratings agencies S&P Global and Moody’s are scheduled to review South Africa’s sovereign credit ratings, with their decisions expected on Friday.
An improved fiscal outlook in last month’s mid-term budget means the ratings agencies are likely to strike a positive tone in their reviews, but that may not translate into an upgrade yet.
South African rand weakens in early trade, eyes on US inflation
September retail sales figures are due to be published on Wednesday, with analysts predicting a 1.0% year-on-year rise after a 2.0% rise the previous month.
On the Johannesburg Stock Exchange, the Top-40 index was up about 0.1%.
The South African government’s benchmark 2030 bond was flat, with the yield at 10.19%.
Comments
Comments are closed.