JOHANNESBURG (Reuters) -The South African rand was flat on Tuesday, as global traders awaited a U.S. interest-rate decision and a possible trade deal between the U.S. and China, the world’s two biggest economies.
At 1406 GMT the rand traded at 17.21 against the dollar, little changed from Monday’s closing level of 17.2275.
Economists have said the U.S. Federal Reserve is poised to reduce interest rates by 25 basis points at its meeting this week.
“The Fed will influence inflation and interest rate expectations and could materially impact how the USD trades. The U.S.-China trade talks could influence global risk appetite, while all the domestic data hold implications for domestic monetary policy and the impact that will have on the ZAR’s carry attractiveness,” said ETM Analytics in a research note.
Domestically focused traders will look to money supply and private sector credit data on Wednesday, budget balance and producer inflation numbers on Thursday and trade balance figures on Friday for clues to the health of Africa’s largest economy.
On the Johannesburg Stock Exchange, the Top-40 index last traded 1.2% stronger, paring some of its recent losses.
South Africa’s benchmark 2035 government bond was flat, with the yield only down half a basis point to 8.88%.
(Reporting by Anathi Madubela;Additional reporting by Sfundo Parakozov;Editing by Mark Potter and Bernadette Baum)
