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JOHANNESBURG, Aug 4 (Reuters) – The South African rand was steady in early trade on Tuesday as investors weighed conflicting signals over potential U.S.-Iran talks and looked ahead to key U.S. labour market data for clues on the Federal Reserve’s interest rate path.
- At 0612 GMT, the rand traded at 16.5150 against the dollar , a whisker away from its previous close.
- Conflicting signals from the United States and Iran over the status of talks to end their five-month-old war boosted uncertainty, with the latest attack on shipping near the Strait of Hormuz highlighting risks to global energy flows.
- The greenback bounced from a 1-1/2-month low to 100 against a basket of currencies as traders assessed developments in the Middle East, with oil prices also up about 1% after a plunge in the previous session.
- “If we are to see some movement [in the rand] this week, that rests with any peace deal between the U.S. and Iranians and the employment data coming out on Friday,” Adam Phillips of Umkhulu Treasury said.
- In the absence of major domestic data, the rand, like other emerging market currencies, tends to take direction from global factors, including U.S. economic releases and geopolitical developments.
- South Africa’s benchmark 2035 government bond was unchanged in early trade, with the yield holding steady at 8.49%.
Reporting by Nilutpal Timsina; Editing by Andrew Heavens.
