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South African rand gains against dollar ahead of Fed minutes

08/16/2022 | 12:16pm EDT
Visitors walk past a reception with an electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton, Johannesburg

JOHANNESBURG (Reuters) -The South African rand rose against the dollar on Tuesday as investors awaited policy cues from the U.S. Federal Reserve on its pace of interest rate hikes to tame inflation.

At 1557 GMT, the rand traded at 16.4050 against the dollar, up 0.33% from its previous close.

The rand fell around 1.6% against the dollar on Monday in risk-off trade. The rand tends to take its cue from overseas drivers in the absence of major domestic economic data.

On global markets, the safe-haven U.S. dollar was trading little changed at 106.500 as world economic indicators stoked recession fears.

The minutes from last month's Fed meeting, which will be released on Wednesday, will likely give investors further clues about the U.S. interest rate trajectory.

Meanwhile, South Africa-focused investors will look to June retail sales figures for indications of the economy's second-quarter performance. Last week June manufacturing and mining numbers came in worse than expected, adding to evidence the economy was struggling to gain momentum.

Stocks on the Johannesburg Stock Exchange (JSE) rose, riding on buoyant earnings updates by miners BHP Group Ltd and Exxaro Resources Ltd. Helped by a boost in their profits due to soaring coal prices, they ended up 6.40% and 5.49% respectively.

Overall on the JSE, the All-share index closed 1.08% higher, while the Top-40 index ended up 1.1%.

The South African government's benchmark 2030 bond was weaker, with the yield up 8 basis points to 10.080%.

(Reporting by Alexander Winning, Nqobile Dludla and Bhargav AcharyaEditing by Peter Graff and Bernadette Baum)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -1.34% 0.6421 Delayed Quote.-10.29%
BRITISH POUND / US DOLLAR (GBP/USD) -1.52% 1.11758 Delayed Quote.-15.37%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.83% 0.72907 Delayed Quote.-6.41%
EURO / SOUTH AFRICAN RAND (EUR/ZAR) -0.29% 17.58658 Delayed Quote.-3.36%
EURO / US DOLLAR (EUR/USD) -0.96% 0.98158 Delayed Quote.-12.82%
GOLD -0.40% 1710.48 Delayed Quote.-5.68%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.52% 0.012186 Delayed Quote.-8.58%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -1.75% 0.56704 Delayed Quote.-16.09%
S&P GSCI GOLD INDEX -0.26% 998.9524 Real-time Quote.-5.20%
SILVER -0.59% 20.5182 Delayed Quote.-9.79%
US DOLLAR / SOUTH AFRICAN RAND (USD/ZAR) 0.65% 17.9192 Delayed Quote.10.21%
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