South African rand bows to rising dollar

Joy Onuorah
Joy Onuorah
South African rand bows to rising dollar

South Africa’s rand experienced a decline on Monday against a strengthening US dollar, with investors anticipating the central bank’s verdict on monetary policy later this week.

As of 06:35 GMT, the rand was trading at 18.2050 versus the dollar, reflecting a decrease of 0.26% from its previous close.

In contrast, the dollar index, which measures the US currency against six significant competitors, increased by over 0.2% to 103.20.

According to ETM Analytics, “Volatility in the rand remains the order of the day, although the local unit did perform a little better last week, at least against the dollar.”

The South African Reserve Bank is scheduled to release its interest rate decision on Thursday, with analysts expecting a 25-basis-point hike.

In early trading, the government’s benchmark 2030 bond saw a slight uptick in strength, with the yield decreasing by one basis point to 9.925%.

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