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Rand slips as local market awaits rate decision

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South Africa’s rand slipped in early trading on Wednesday as local markets traded cautiously ahead of an impending central bank rate decision on Thursday.

South African stocks closed higher on Tuesday after efforts by regulators to allay fears over the global banking system restored some risk appetite. File picture: Waldo Swiegers, Bloomberg

SOUTH Africa’s rand slipped in early trading on Wednesday as local markets traded cautiously ahead of an impending central bank rate decision the following day.

At 8.47am, the rand traded at 18.1950 against the dollar, 0.2% weaker than its previous close.

The dollar index, which measures the currency against six rivals, was up about 0.14% at 102.630.

South African stocks closed higher on Tuesday after efforts by regulators to allay fears over the global banking system restored some risk appetite.

There are no local data releases due until Thursday, when the South African Reserve Bank (SARB) will announce its rate decision, with markets expecting a 25-basis-point hike.

The government’s benchmark 2030 bond was slightly weaker in early trading, with the yield up 0.5 basis points to 9.895%.

– REUTERS

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