S. Africa’s rand slightly down on Monday

The South African rand weakened slightly in early Monday trade, with the dollar recovering after last week’s dip on US rate cut bets. By 0644 GMT, the rand was at 18.1950 to the dollar, down 0.1 per cent. The dollar gained 0.05 per cent against global currencies.

US data showed a June job market slowdown and rising unemployment, increasing hopes for a September rate cut. “Bets on a possible September rate cut have climbed, lifting risk sentiment,” said Andre Cilliers of TreasuryONE.

The rand is expected to trade between R18.00 and R18.40 in the short term. Moreover, South Africa’s benchmark 2030 government bond yield fell 2.5 basis points to 9.735 per cent.

Attribution: Reuters.