JOHANNESBURG, Sept 9 (Reuters) – The South African rand slipped against a stronger dollar in early trade on Monday, and analysts said the U.S. currency and economic data were likely to largely determine the rand’s trajectory this week.
At 0635 GMT, the rand traded at 17.8850 against the dollar, about 0.3% weaker than its previous close.
The dollar was up around 0.2% against a basket of global currencies, as markets looked to Wednesday’s U.S. inflation report for more clues about the size of a Federal Reserve rate cut expected next week.
U.S. producer inflation and consumer sentiment data are scheduled for release.
“Direction in currency markets will likely be taken from U.S. data releases,” ETM Analytics said in a research note, adding that a bigger Fed rate cut would likely boost the risk-sensitive rand’s prospects.
Local data points this week include July manufacturing output figures on Tuesday and mining production numbers on Thursday.
Economists polled by Reuters predict both sectors will register year-on-year growth after declines in June, reflecting volatile conditions in key sectors of Africa’s most industrialised economy.
South Africa’s benchmark 2030 government bond was unchanged in early trade, the yield at 8.99%.
(Reporting by Alexander Winning; Editing by Gareth Jones)