South African rand weakens as dollar firms ahead of U.S. inflation data

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South African rand weakens as dollar firms ahead of U.S. inflation data
South African rand weakens as dollar firms ahead of U.S. inflation data

Africa-Press – Gambia. JOHANNESBURG, Jan 10 (Reuters) – The South African rand slightly weakened on Monday, as the greenback strengthened on the prospect that U.S. inflation data would bolster the case for the Federal Reserve to raise interest rates sooner than expected.

At 0650 GMT, the rand traded at 15.5925 against the dollar, down around 0.2% on its previous close.

U.S. inflation figures are due on Wednesday, with headline consumer inflation seen climbing to a red-hot 7% year-on-year.

The dollar (.DXY) was last up 0.2% against a basket of currencies.

South Africa’s economic data calendar is fairly light this week, so the rand will probably mainly track global markets. Domestic manufacturing data for November (ZAMAN=ECI), due on Tuesday, could give the best insight into the state of Africa’s most industrialised economy.

The government’s benchmark 2030 bond was also slightly weaker in early deals, with the yield rising 3 basis points to 9.435%.

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