South African rand slips amid geopolitical tensions, investors await local inflation data
South Africa's rand traded weaker on Monday as risk appetite waned amid geopolitical tensions and as traders looked ahead to domestic inflation data due this week for clues on the central bank's rate-cutting path later this year.
At 0755 GMT the rand traded at 16.4750 against the dollar, about 0.5% down from its previous close.
ETM Analytics said that risk appetite might be in shorter supply at the start of the week after President Donald Trump threatened a wave of increasing trade tariffs on key European allies till the US is allowed to buy Greenland.
"For the ZAR, this will leave the local unit on the defensive this morning. That sentiment may further compound in the trading sessions ahead, depending on the nature of negotiations and rhetoric between the US and the EU over Greenland," ETM Analytics said in a research note.
Like other risk-sensitive currencies, the rand often takes its cue from global drivers such as US policy.
Domestically-focused traders will examine consumer inflation data on Wednesday, which has major relevance for monetary policy but also holds implications for South Africa's financial markets.
"Consensus estimates have the inflation rate rising marginally to 3.6%, although the downside risk to this data is high. With the ZAR having performed well in recent months, it is likely the market has underestimated the ZAR's impact," ETM Analytics said.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.2% in early trade.
South Africa's benchmark 2035 government bond was also weaker in early deals, as the yield rose 9.5 basis points to 8.44%.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
