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Rand flat as investors await fresh cues from central banks

In early trade the rand was at R16.35 against the dollar, with barely any movement from its previous close.
Image: AdobeStock

The rand traded flat against the dollar on Tuesday, as cautious investors refrained from making big bets amid fears that central banks around the world will hike interest rates and push economies into recession to break red-hot inflation.

At 0950 GMT, the rand traded at R16.35 against the dollar, with barely any movement from its previous close.

The dollar index, which measures the buck against six major peers, rose around 0.5% to 105.61 after finishing Monday largely unchanged.

Traders were looking ahead to Wednesday’s Fed minutes and Friday’s US non-farm payrolls and unemployment data for fresh direction, Andre Cilliers, currency strategist at TreasuryONE, said in a note.

The Fed will likely deliver another 75 basis point (bp) rate hike in July, followed by a 50 bp rise in September, and won’t scale back to quarter-percentage point moves until November at the earliest, according to a Reuters poll.

In the stock market, the Top-40 index and the broader all-share dropped around 0.5% each in early trade.

The government’s benchmark 2030 bond was weaker in early deals, with the yield up 0.5 basis points to 10.485%.

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