ADVERTISEMENT

Rand slips as U.S. Fed hike bets return

A slew of data from the U.S. this week ending with employment numbers on Friday will be searched for clues on the Fed's next move.

A South African child holds a 50 rand note  in a file photo.

South Africa's rand traded weaker against the dollar early on Monday after the Federal Reserve's vice chairman suggested over the weekend that the United States may raise rates in September.

At 0630 GMT the rand eased 0.14 percent to 13.3275 per dollar, extending losses to a third straight session following a modest recovery from last week's all-time low.

The unit collapsed to 14.00 versus the greenback last Monday on the back of a global stocks sell-off triggered by concerns over China's slowing economy as well as the timing of rate hike in the U.S.

"The week ahead could be telling for the S.A. currency as market players turn their gaze away from China and back to U.S. Fed," analysts at NKC African Economics said in a note.

ADVERTISEMENT

The Federal Reserve's vice chairman said on Saturday inflation was likely to rebound as pressure from the dollar faded, allowing the bank to raise interest rates gradually.

Concerns of a "taper tantrum", similar to 2013 when investors pulled out of emerging markets after the U.S. ended its massive bond-buying program, look set to keep currencies in those economies on the back foot, traders said.

Locally, trade data due later in the session is expected to provide opportunity to gauge South Africa's vulnerability to foreign portfolio outflows.

Yields on government bonds were higher in early trade, with the benchmark paper due in 2026 adding 2 basis points to 8.365 percent.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Obama, Clinton support Biden at NYC fundraiser amid protests

Obama, Clinton support Biden at NYC fundraiser amid protests

Tinubu’s refusal to celebrate 72nd birthday marks great leadership - Rahman

Tinubu’s refusal to celebrate 72nd birthday marks great leadership - Rahman

Adamawa Police reaffirms ban on motorcycles in Yola

Adamawa Police reaffirms ban on motorcycles in Yola

You make bold decisions & live with consequences - Ondo Gov hails Tinubu at 72

You make bold decisions & live with consequences - Ondo Gov hails Tinubu at 72

170 electrical vandalism cases in 2 years, 100 charged to court - EEDC

170 electrical vandalism cases in 2 years, 100 charged to court - EEDC

Tinubu appoints Bello as chairman of code of conduct bureau

Tinubu appoints Bello as chairman of code of conduct bureau

Don't curse, condemn Nigeria in your sermons - Tinubu tells clerics

Don't curse, condemn Nigeria in your sermons - Tinubu tells clerics

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT