South African rand up slightly; focus on local PMIs and Fed this week
2023.05.02 02:41
© Reuters. FILE PHOTO: South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
JOHANNESBURG (Reuters) – was marginally stronger in early trade on Tuesday, with market attention this week likely to hinge on local purchasing managers’ index (PMI) surveys and a U.S. Federal Reserve interest rate meeting.
At 0550 GMT, the rand traded at 18.3725 against the dollar, around 0.1% stronger than its previous close.
The U.S. currency was last down about 0.1% against a basket of currencies.
PMI surveys for the manufacturing sector and whole economy will give investors further insight into the health of Africa’s most industrialised economy.
The Fed is expected to deliver another 25 basis point rate hike on Wednesday.
Investors will focus on whether the U.S. central bank indicates that it expects to pause rate increases after May, or if it keeps alive the possibility of another hike in June or later.
South Africa’s benchmark 2030 government bond was also slightly stronger in early deals, the yield down 0.5 basis points to 10.175%.
