South African Rand Eases as Investors Await Local Economic Data
The South African rand edged lower on Monday, pausing its recent rally that had lifted it to a nine-month high. The currency traded at 17.46 per dollar, down 0.2% from Friday’s close, as traders took profit while awaiting fresh domestic economic indicators, figures from Reuters showed.
The recent rally was fueled by a weaker U.S. dollar and firmer gold prices, with momentum further supported after Federal Reserve Chair Jerome Powell signaled the possibility of a U.S. interest rate cut in September, Reuters indicated.
Market attention is now turning to a busy week of local data releases, including South Africa’s business cycle leading indicator, producer inflation, private sector credit, money supply, as well as trade and budget balances.
Analysts stressed in Reuters coverage that these figures will be crucial in guiding investor sentiment and shaping expectations for the South African Reserve Bank’s next policy moves.
