The South African rand slips on a stronger dollar; economic data in the eyes

The South African Rand coins can be seen in this photo illustration taken on November 5, 2020. REUTERS / Mike Hutchings / Illustration

The South African rand got off to a weak start against the stronger US dollar on Monday, with investors awaiting a set of local and global data this week.

At 6:15 am GMT, the rand was trading at 14.5200 against the dollar, 0.24% lower than its Friday close, when it suffered losses of more than 1%.

“These losses (Friday) broke technical resistance levels on the upper side, with this scenario suggesting potential for further weakness for the local unit as the US dollar rallies across the board. Although activity may be limited today, because the UK is on vacation, ”Nedbank analysts said in a note.

The rand lost momentum as investors worried about local economic growth and the duration of expansionary fiscal and monetary policies in developed economies that have so far supported currency flows and a healthy trade surplus. . Read more

A slew of US economic data this week, including the ISM manufacturing survey and April payroll figures, are being sought by investors for other clues to the recovery in the world’s largest economy.

Domestically, the survey of manufacturing, new vehicle sales and expected reserves data this week should provide some insight into the health of the local economy.

Government bonds also weakened in the first trades, with the instrument’s yield expected in 2030 rising 1.5 basis points to 9.305%.

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