Market News

JOHANNESBURG, Sept 16 (Reuters) – The South African rand was steady in early trade on Wednesday after recovering some losses from the previous two sessions, supported by gold prices returning above the $4,300-per-ounce level.

• At 0820 GMT the rand traded at 16.26 against the dollar, little changed from its previous close.
• The firmer bullion price has improved sentiment towards the rand, given the importance of precious-metal exports to the local economy.
• Oil prices, which had added pressure to the rand, fell on Wednesday after an unexpectedly large increase in U.S. crude inventories ended a two-day rally.
• “The local currency is currently at 16.23 rand to the dollar, however, we could still see some short-term volatility ahead of the FOMC later today,” said Andre Cilliers, Currency Strategist at TreasuryONE.
• Market participants are looking ahead to the U.S. Federal Reserve’s policy decision, with a rate hike largely priced in.
• Domestic investors will focus on July retail sales data, due at around 1100 GMT. Economists polled by Reuters expect annual growth to rise by 0.9%.
• On the Johannesburg Stock Exchange, the Top-40 index was down 0.6% in early trade.
• South Africa’s benchmark 2035 government bond was firmer in early deals, with the yield down 3.5 basis points to 8.775%.