JOHANNESBURG, (The Southern African Times) – The South African rand began the week on firmer footing against a broadly flat dollar =USD, ahead of a slew of domestic economic data this week that should give insights into the health of the economy.
At 0605 GMT, the rand ZAR= traded at 14.9000 against the dollar, 0.3% firmer than its previous close.
Focus this week is on various economic data including August credit numbers, producer price inflation and trade figures, all due on Thursday.
The week is also packed with speeches from U.S. Federal Reserve policymakers led by Chair Jerome Powell on Tuesday and Wednesday, where investors will be looking for cues on the U.S central bank’s rate increase path.
A pair of Federal Reserve policymakers said on Friday they felt the U.S. economy was already in good enough shape for the central bank to begin to withdraw support.
Riskier currencies, such as the rand, thrive on U.S. interest rates remaining low because they benefit from the interest rate differential that increases their appeal for so-called carry trade.
Government bonds weakened in early deals, with the yield on the 2030 instrument ZAR2030= adding 9.5 basis points to 9.205%.
