South African rand slips as investors eye inflation data

South Africa's rand slipped against a stronger dollar on Monday, 21 October 2024, as investor focus shifts towards local inflation figures due later this week.

Source: Reuters.

At 0706 GMT, the risk-sensitive rand traded at 17.64 against the dollar, 0.3% weaker than its previous close.

The dollar index was last up about 0.15% against a basket of currencies as bets rose of another potential Donald Trump presidency.

"The South African rand whipsawed last week as the USD gained across the board," said Jee-A van der Linde, senior economist at Oxford Economics.

On Wednesday, 23 October 2024, Statistics South Africa will release monthly inflation figures, which will provide further clues on the central bank's interest-rate trajectory.

Analysts expected more disinflation in September after price pressures dipped in August, which paved the way for the first interest-rate cut by the South African Reserve Bank in four years.

On the stock market, the Top-40 index was up 0.1% in early trade.

South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 2.5 basis points to 9.305%.