South African Rand Strengthens Ahead of Retail Sales Data

124

The South African rand demonstrated strength in early trading on Wednesday, anticipating December retail sales data, following a decline of over 1% against the dollar the previous day.

As of 0747 GMT, the rand was positioned at 19.1000 against the dollar, exhibiting a 0.2% improvement compared to its last closing rate. The dollar remained relatively stable against a basket of global currencies, maintaining its position after reaching a three-month high on Tuesday following the news of higher-than-expected U.S. inflation. This development reinforced market expectations of the Federal Reserve maintaining interest rates in March.

Statistics South Africa is scheduled to unveil December retail sales figures at 1100 GMT. Economists surveyed by Reuters anticipate a year-on-year decrease of 0.7%.

Meanwhile, on the Johannesburg Stock Exchange, the Top-40 index experienced a 0.2% decline. South Africa’s benchmark 2030 government bond displayed slight weakness, with the yield increasing by 1 basis point to 10.120%.