Market News
South African rand steady as investors focus on next week’s inflation data, rate decision - REUTERS
BY Anathi Madubela
JOHANNESBURG, Nov 13 (Reuters) – The South African rand was steady in early trade on Friday, supported by softer oil prices and firmer commodity prices, as local investors turned their attention to upcoming inflation data and the central bank’s interest rate decision.
- At 0708 GMT the rand traded at 16.7550 against the dollar, little changed from its previous close of 16.7676
- Oil prices inched down on Friday and were headed for a second weekly decline as a continued US blockade of Iran eased fears of renewed fighting in the Middle East, though shipping attacks remained a supply risk.
- As a net importer of fuel, South Africa is highly exposed to global oil price movements.
- South Africa’s key exports, gold and platinum, climbed more than 1% on Friday, with platinum on track for modest weekly gains.
- Next week, Statistics South Africa will release October inflation data, and the South African Reserve Bank will announce its interest rate decision.
- At its September meeting, the central bank increased interest rates by 25 basis points, citing persistent price pressures stemming from the war in Iran and the need for tighter policy to keep inflation expectations anchored.
- South Africa’s benchmark 2035 government bond was weaker in early deals, as the yield rose 6.5 basis points to 8.56%.
