JOHANNESBURG (Reuters) -South Africa’s rand was on the back foot for much of Tuesday’s trading session as markets awaited the U.S. Federal Reserve’s upcoming Jackson Hole symposium and inflation figures from Africa’s most industrialised economy.
At 1545 GMT the rand traded at 17.6625 against the dollar, down about 0.3% from Monday’s close.
Fed Chair Jerome Powell is due to speak on the economic outlook and the central bank’s policy framework on Friday.
ETM Analytics said the risk-sensitive rand will likely take cues from this meeting as it currently remains range-bound against the dollar.
“The USD-ZAR started the week on the defensive, which looks set to continue,” the note said.
“Expectations are for central banks to adopt a more dovish stance, but with some conservatism as the full effects of the tariffs remain unknown. Early signs that the global economy may be slowing require confirmation, which will take several more months.”
Statistics South Africa will release July inflation data on Wednesday, with most analysts expecting a rise from 3.0% in June.
The Johannesburg Stock Exchange’s Top-40 index was little changed from Monday’s close.
South Africa’s benchmark 2035 government bond was also flat with the yield up half a basis point at 9.65%.
(Reporting by Sfundo Parakozov and Anathi Madubela;Editing by Joe Bavier and Christina Fincher)
