(Updates to reflect afternoon trade, adds analyst comment)
JOHANNESBURG, April 24 (Reuters) - The South African
rand slipped on Monday as markets awaited economic data out of
the U.S. later this week, which could influence the Federal
Reserve's rate-hiking cycle.
At 1512 GMT, the rand traded at 18.1550 to the dollar , down 0.28% from its Friday close.
The U.S. currency was last down 0.18% against a basket of
rivals .
The lack of risk appetite for the rand is a response "to
high impact data this week that will set the tone for next
week's Fed rate decision – an announcement that will likely
shape the (South African Reserve Bank's) reaction", DailyFX
analyst Warren Venketas told Reuters.
Investors will be looking at the U.S. GDP quarterly growth
rate and core Personal Consumption Expenditures (PCE) index data
due later this week for clues on the Fed's future path.
South Africa marks Freedom Day on Thursday, and with the
following Monday another public holiday - Workers' Day - many
local traders will be away from their desks from Wednesday's
market close until next Tuesday.
The risk-sensitive rand often takes its cue from global
factors like the outlook for U.S. monetary policy in the absence
of major local drivers.
On global markets, the focus will be on a slew of central
bank policy meetings that could signal how soon the steep
increases in interest rates globally might come to an end.
"The South African economy will find it difficult to cope
with a sustained aggressive hiking cycle from the U.S.,"
Venketas added.
"The next few weeks will be crucial for not just the local
currency but the South African economy as a whole."
Shares on the Johannesburg Stock Exchange gained slightly,
with both the broader all-share index and the blue-chip
Top-40 index ending over 0.2% higher.
The government's benchmark 2030 bond was weaker,
with the yield up 6 basis points at 10.180%.
(Reporting by Tannur Anders and Alexander Winning; Editing by
Bhargav Acharya)
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