South African rand gains after hitting 9-month low, US inflation data in focus
South Africa's rand firmed early on Tuesday, 14 January 2025 against a stronger dollar, as markets looked to US inflation data due on Wednesday for clues on the Federal Reserve's interest rate path.
Source: Reuters.
At 0546 GMT, the rand traded at 18.9850 against the US dollar, about 0.2% stronger than its previous close. 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 US inflation data... could change all that again," ETM Analytics said in a note.
Recent US 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%.
Source: Reuters
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