South Africa's rand dips, stocks to open higher - CNBC Africa

South Africa's rand dips, stocks to open higher

Southern Africa

by Reuters 0

South Africa's rand dips, stocks to open higher. PHOTO: Wikipedia

South Africa's rand weakened early on Monday ahead of a data-filled week, giving up the previous week's gains as global risk appetite wavered.

Stocks were set to open higher at 0700 GMT, with the JSE securities exchange's Top-40 futures index up 0.8 percent.

At 0645 GMT the rand had slipped 0.45 percent to 15.2900 per dollar, reversing a run that took the currency towards 15.00, a level it has not breached in nearly three months.

Bonds edged weaker in early trade, with the government paper due in 2026 adding 1 basis point to 9.125 percent.

"There is support at 15.15 and 15.05 that should keep the dollar intact today with exporters probably likely to enter the market anywhere close to the 15.35/40 areas," currency trader at Standard Bank Warrick Butler said in a note.

With little data due in the session traders expect direction later in the week from the local release of consumer inflation figures on Wednesday and an interest rate decision on Thursday.

A Reuters poll of 30 economists expects the South African Reserve Bank (SARB) to leave its benchmark lending rate at 6.75 percent after hiking by 50 basis points in January, despite rapidly rising inflation.

A rates decision on Wednesday by the United States central bank is also set to determine emerging market flows as investors look for clues on the pace of rate hikes in the world's top economy.

 

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