The South African rand edged up in early trade on Friday as dealers awaited remarks by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
At 06:59 GMT, the rand traded at 15.9725 against the dollar, up 0.2% from its previous close.
- The U.S. dollar index , which measures the greenback against a basket of currencies including the yen and the euro, was a shade higher at 99.18.
- Market participants were awaiting Warsh’s debut speech in Jackson Hole, Wyoming, scheduled for 1400 GMT, for clues on how he will approach monetary policy, inflation, and recent volatility in bond markets, although expectations were tempered by his opposition to providing explicit forward guidance on rates.
- “Although the USD-ZAR downside bias remains intact, there are enough developments to make investors think twice about how much stronger they think the rand might go,” ETM Analytics said in a note.
- Like other risk-sensitive currencies, the rand tends to take its cues from global developments, including U.S. economic data and policy signals.
- Later in the day, the National Treasury will publish July budget balance figures, which should give fresh clues on South Africa’s fiscal position.
- On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was up about 1% in early trade.
- South Africa’s benchmark 2035 government bond was steady in early deals, with the yield holding at 8.455%.
-Reuters
