South African rand softer ahead of business confidence index, monetary policy review

JOHANNESBURG, Oct 15 (Reuters) – South Africa’s rand softened early on Tuesday ahead of the release of the South African Chamber of Commerce and Industry’s (SACCI) September Business Confidence Index and the South African Reserve Bank’s (SARB) bi-annual Monetary Policy Review.

At 0644 GMT, the rand traded at 17.6350 against the dollar , about 0.2% weaker than its previous close.

The dollar last traded about 0.08% firmer against a basket of global currencies.

“With only the SACCI Business confidence data scheduled for release today, the bulk of the domestic focus will likely turn to the release of the SARB’s bi-annual monetary policy review,” ETM Analytics said in a research note.

“While the SACCI index aggregates data that has been released and is historical, the bi-annual review might reveal some insight that would help investors position themselves for future monetary policy,” the note added.

Investors will also be watching developments in the Federal Reserve’s rate cutting path and Chinese asset volatility, both of which could influence the rand’s direction.

South Africa’s benchmark 2030 government bond was little changed in early deals. (Reporting by Tannur Anders)

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