South Africa’s Rand weakened against the US Dollar on Monday as investors focus on local inflation data due later this week.
The Rand traded at R17.6425 against the Dollar, marking a 0.3% decrease from its previous close.
The dollar index showed a 0.4% increase against a group of currencies. Statistics South Africa will release monthly inflation data on Wednesday, providing insight into the interest rate trajectory of the South African Reserve Bank (SARB).
Analysts anticipate further disinflation in September following a decline in price pressures in August, which led to the central bank’s 25 basis point interest rate cut last month, the first rate cut in four years.
With inflation at its lowest level since April 2021, Kavir Surujhlal, junior sales trader at IG Group, suggested that the market might be factoring in another 25 basis point cut at the bank’s upcoming policy meeting in November.
Also, the Top-40 (.JTOPI) index ended the day 0.14% lower on the stock market. South Africa’s benchmark 2030 government bond was weaker, with the yield up 6.5 basis points to 9.345%.