South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS
JOHANNESBURG, April 28 (Reuters) – The South African rand weakened in early trade on Tuesday, pressured by a firm U.S. dollar before the release of central bank data that will shed light on the economic outlook.
- At 0647 GMT, the rand traded at 16.6225 against the dollar , down around 0.4% from its previous close
- The currency has been under pressure as elevated oil prices kept inflation concerns high
- The dollar edged up against a basket of currencies, and oil prices hovered above $109 a barrel, as the crucial Strait of Hormuz waterway remained largely shut
- At around 0700 GMT, the South African Reserve Bank (SARB) will publish the country’s leading business cycle indicator or February, which collects data on vehicle sales, business confidence, money supply and other factors
- Later in the week, investor attention will mainly focus on producer inflation numbers, March’s trade balance, as well as new vehicle sales for April which could offer clues on the health of Africa’s most industrialised economy
- South Africa’s benchmark 2035 government bond was also down in early deals, as the yield rose 5.5 basis points to 8.665%
Reporting by Anathi Madubela; Editing by Jacqueline Wong
