South African rand holds steady as traders await domestic news

JOHANNESBURG: The South African rand held steady against a weak dollar in early trade ​on Wednesday as investors avoided taking large ‌positions ahead of domestic economic data that could offer further clues on the health of Africa’s largest economy. At ​0658 GMT the rand traded at 15. 9975 ​against the dollar, little changed from its ⁠previous close. The currency came under pressure on Tuesday ​after data showed South Africa’s economy contracted in ​the second quarter for the first time in nearly two years, weighed down mainly by the impact of the Iran ​war. It has since pared the losses supported ​by U. S. dollar weakness and firmer gold prices as South Africa ‌is ⁠one of the world’s largest exporters of the precious metal. The focus will turn to current account, mining and manufacturing figures on Thursday. Investors also await ​US producer ​price index ⁠data on Thursday and consumer price index figures on Friday. In common with ​other risk-sensitive currencies, the rand often ​takes ⁠cues from global drivers such as US economic indicators, in addition to domestic economic data. South Africa’s ⁠benchmark ​2035 government bond was weaker ​in early deals, as the yield rose 3 basis points to ​8. 65%.

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