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South African rand stronger as dollar slips before U.S. inflation data

reuters.com · 06/10/2022 02:52
South African rand stronger as dollar slips before U.S. inflation data

- The South African rand was stronger early on Friday, as the dollar slipped before closely watched U.S. inflation data that could influence the Federal Reserve's policy tightening path.

At 0643 GMT, the rand ZAR=D3 traded at 15.4125 against the dollar, around 0.68% higher than its previous close.

The dollar index =USD, which measures the greenback against six peers, was down around 0.1%.

The U.S. May consumer price index (CPI) is expected to cool a fraction, an outcome which could give the Fed some wiggle room to raise rates less aggressively later in the year. nL1N2XX09E

Higher rates in the United States tend to drain capital from emerging markets like South Africa.

Stocks were set to open lower at 0700 GMT, with the JSE securities exchange's Top-40 futures index ALSIc1 down around 0.5%.

The government's benchmark 2030 bond ZAR2030= was weaker in early deals, with the yield rising 9.5 basis points to 10.075%.


(Reporting by Anait Miridzhanian in Gdansk; Editing by Toby Chopra)

((Anait.Miridzhanian@thomsonreuters.com; +48 58 769 66 05))