The South African rand remained stable early on Tuesday, with traders being cautious before the U.S. inflation figures. These figures may give hints on the Federal Reserve’s interest rate path. At 0645 GMT, the rand traded at 18.6650 against the dollar, similar to its previous close. The dollar index remained steady against a basket of currencies.
According to Andre Cilliers, the currency strategist at TreasuryONE, trading has been quiet with low volumes. Like most emerging market currencies, the rand takes direction from global factors such as U.S. monetary policy, along with domestic economic releases. South Africa has no significant data due until Thursday when gold, mining, and manufacturing production figures for January are released. In early deals, South Africa’s benchmark 2030 government bond was weaker, with the yield up 2.5 basis points to 10.130%.