South African rand steady as dollar fades further

PUBLISHED: Tue, 20 Apr 2021 07:54:36 GMT

JOHANNESBURG, April 20 (Reuters) – South Africa’s rand was steady on Tuesday as the dollar remained on the back foot on global markets.

At 0747 GMT, the rand traded at 14.2200 versus the dollar, less than 0.1% stronger than its previous close. The dollar index eased 0.2%.

In recent weeks the rand has tended to take its cue from global drivers including the fortunes of the dollar, which has been losing traction as retreating Treasury yields dented its allure.

Data showing a 2.0% month-on-month increase in the South African Reserve Bank’s leading indicator – which gauges the outlook for Africa’s most industrialised economy – did little to influence trading on Tuesday.

On Wednesday, investors will look to the consumer price index for clues about inflationary pressures.

Inflation has been weak since the government imposed a strict coronavirus lockdown more than a year ago, dipping below the central bank’s 3%-6% target range in February.

On the stock market, the Top-40 index was down 0.13% early on Tuesday. Government bonds also dipped, as the yield on the benchmark 2030 instrument rose 4.5 basis points to 9.13%.

(Reporting by Alexander Winning; Editing by Kirsten Donovan)

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