South African rand gains after hitting 9-month low, US inflation data in focus
South Africa's rand firmed early on Tuesday against a stronger dollar, as markets looked to United States' inflation data due on Wednesday for clues on the Federal Reserve's interest rate path.
The greenback last traded about 0.1% stronger against a basket of currencies.
The rand hit a nine-month low on Monday before staging a recovery, against a stronger dollar amid an uncertain outlook for further interest rate cuts by the Fed.
"There is not much that can be read into the rand's overnight recovery back below the 19.00 handle. Although it is welcome, the U.S. inflation data... could change all that again," ETM Analytics said in a note.
Recent U.S. data underscored the strength of the economy, leading traders to scale back bets for 2025 rate cuts.
South Africa's benchmark 2030 government bond was little changed in early deals, with the yield at 9.315%.
The greenback last traded about 0.1% stronger against a basket of currencies.
The rand hit a nine-month low on Monday before staging a recovery, against a stronger dollar amid an uncertain outlook for further interest rate cuts by the Fed.
"There is not much that can be read into the rand's overnight recovery back below the 19.00 handle. Although it is welcome, the U.S. inflation data... could change all that again," ETM Analytics said in a note.
Recent U.S. data underscored the strength of the economy, leading traders to scale back bets for 2025 rate cuts.
South Africa's benchmark 2030 government bond was little changed in early deals, with the yield at 9.315%.
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