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The South African rand suffers further losses ahead of Powell’s speech
The South African rand fell further in early trade on Friday, ahead of a speech by the chairman of the United States Federal Reserve, which might set the tone for future interest rate hikes in the world’s largest economy.
At 0605 GMT, the rand was trading at 18.8700 per dollar ZAR=D3, down 0.3% from its previous close. The rand has experienced a volatile week, which has contributed to its over 5% loss month to date.
The dollar was recently trading 0.1% higher versus a basket of major currencies.
Jerome Powell will deliver a speech to global central bankers at the Jackson Hole Symposium on Friday. The market is braced for Powell’s hawkish tone, which might signal further rate hikes in the United States.
Jerome Powell will speak at the Jackson Hole Symposium for global central bankers on Friday. The market is braced for Powell’s hawkish tone, which might signal future rate hikes in the United States.
In the lack of internal economic data, the risk-averse rand frequently draws cues from global issues such as US monetary policy.
Later in the day, the South African government will conduct its weekly auction of inflation-linked bonds.
South Africa’s benchmark 2030 government bond ZAR2030= fell in early trade, with the yield rising 4.5 basis points to 10.245%.