The dollar rose to a fresh five-week high against the south african rand on Monday as more Federal Reserve members signaled the prospect of swift interest rate increases. This caused the rand to weaken against the U.S currency.
The rand was down 0.34% from its previous level as it traded at 17.0600 against the dollar. After rising to 108.26 for the first time since July 15, the US dollar index, which compares the currency to six rivals, was trading higher at 108.23. In the absence of significant economic data on Monday, the rand is expected to follow global trends.
However, in the coming week, local investors will be watching for signs of the health of the economy in the consumer and producer inflation for July, the unemployment rate for the second quarter, and a leading business cycle indicator.
Before local retail sales and Fed minutes, the South African rand strengthened. Later this week, the Jackson Hole conference, featuring Fed Chair Jerome Powell and a host of other policymakers, will be watched closely by international investors.
Early dealings saw a rise in the benchmark 2030 government bond, with a 9.5 basis point increase in yield to 10.230%.
