JOHANNESBURG, July 22 (Reuters) – The South African rand was stable in early trade on Monday as investors await inflation data later this week for hints on the country’s future interest rate path.
At 0745 GMT, the rand traded at its Friday close of 18.2925 against the dollar.
“With no data out today look for consolidation and ranges to persist,” said Rand Merchant Bank analysts in a research note.
At home, investors will focus on June inflation figures expected on Wednesday, which may give clues on the future interest rate path of Africa’s most industrialised economy.
On Sunday, U.S. President Joe Biden ended his reelection bid and endorsed Vice President Kamala Harris to replace him as the Democratic candidate in the November election against Republican Donald Trump.
“Harris’s emergence as the likely Democratic candidate could introduce uncertainty, affecting market sentiment,” said Andre Cilliers, currency strategist at TreasuryONE.
The risk-sensitive rand often takes its cues from global drivers such as U.S. political developments in addition to domestic factors.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded around 0.2% stronger in early trade.
South Africa’s benchmark 2030 government bond was slightly weaker in early deals, with the yield gaining 1 basis point to 9.66%.
(Reporting by Tannur Anders; Editing by Jacqueline Wong)
