off-the-wire

S.African rand edges higher ahead of inflation data, Fed rate decision

Kitco Media
By Reuters
Published:
Updated:
Reuters
JOHANNESBURG, March 22 (Reuters) - South Africa's rand edged higher in early trade on Wednesday, ahead of the release of local inflation data and highly anticipated interest rate decision by the U.S. Federal Reserve. At 0645 GMT, the risk-sensitive rand traded at 18.5000 against the dollar, 0.32% stronger than its previous close.


South African markets were closed on Tuesday on account of a public holiday. Local investors will be looking at February inflation figures due at 0800 GMT by Statistics South Africa for clues on the health of the economy. Market focus will also be on the Fed's policy meeting, which will end later in the day, with investors awaiting clarity on the path the U.S. central bank could take in the wake of a global banking turmoil.


Markets are currently pricing in a 25-basis-point hike. "Risk-sensitive currencies have all come under pressure due to the prospect of higher rates in the US and the strain on the global banking system," said Andre Cilliers, currency strategist at TreasuryONE.


The government's benchmark 2030 bond was weaker in early deals, with the yield up 5 basis points to 9.980%.
(Reporting by Bhargav Acharya; Editing by Sherry Jacob-Phillips)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.