JOHANNESBURG (Reuters) -The South African rand slipped on Wednesday as the dollar made a tentative rebound, while concerns lingered over the independence of the U.S. Federal Reserve.
By 1520 GMT the rand was trading at 17.7150 against the dollar, about 0.4% weaker than Tuesday’s close.
The dollar traded about 0.2% stronger against a basket of currencies, dulling the appeal of the risk-sensitive rand, which was also on the backfoot for most of Tuesday’s session as markets await clues from local economic data.
Releases due later in the week include producer inflation numbers on Thursday, money supply and private sector credit data, and trade balance and budget balance figures on Friday.
“Even the technicals are not offering much direction to trade on, and it appears that the same also applies to the USD, which is also trading in a range,” ETM Analytics said in a research note.
It added that investors would focus on U.S. President Donald Trump’s doubling of tariffs on Indian imports and “his meddling at the Fed in firing Fed Governor (Lisa) Cook” for directional momentum.
Trump’s increase of taxes on Indian exports to as much as 50% took effect as scheduled on Wednesday, escalating tensions between the world’s two largest democracies and strategic partners.
On the Johannesburg Stock Exchange, the Top-40 index was last down 0.4%.
South Africa’s benchmark 2035 government bond was also weaker, as the yield rose 1 basis point to 9.595%.
(Reporting by Sfundo Parakozov; editing by Clarence Fernandez and Mark Heinrich)
