South Africa’s Rand Consolidates Gains after Dollar Dip
South Africa’s rand remained unchanged in early trade on Monday, steadying after a strong run last week when dovish US Federal Reserve comments hit the dollar.
At 0700 GMT the rand was 0.02 per cent weaker at 13.9575 to the greenback after strengthening to a two-week best on Friday as emerging markets were boosted by increased expectations of the U.S. central bank cutting lending rates this year.
With little on the local data front, the rand has looked to offshore events for direction, and has seen volatile trade with swings in the dollar setting the tone.
According to NKC African Economics, the rand is expected to trade in the range of 13.80 to 14.10 against the dollar this session.
Bonds opened firmer, with yield on the benchmark paper due in 2026 down 4.5 basis points to 8.755 per cent.
Stocks were set to open stronger, with the Johannesburg Stock Exchange’s Top-40 index up 1.30 per cent at 47,061 points.