JOHANNESBURG (Reuters) – South Africa’s rand weakened in early trade on Tuesday, as investors looked for more clarity on the outlook of the Fed’s rate-hike path.
At 0637 GMT, the rand traded at 16.9650 against the dollar, 0.13% weaker than its previous close.
Markets were awaiting a speech by Fed Chair Jerome Powell later on Tuesday and U.S. inflation data on Thursday, which could give cues on the likely path of rates this year.
“U.S. inflation is expected to drop sharply, which could hold implications for U.S. monetary policy,” ETM Analytics said in a research note.
“A larger-than-expected drop might quickly soften expectations for further hikes and detract from the dollar,” ETM added.
The government’s benchmark 2030 bond was almost unchanged in early deals, with the yield at 9.730%.
(Reporting by Anait Miridzhanian; Editing by Nivedita Bhattacharjee)
