South African rand edge higher in early trade
People chat in front of a reception with an electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg, March 14, 2016. REUTERS/Siphiwe Sibeko
JOHANNESBURG (Reuters) – South Africa’s rand rose in early trade against a softer dollar on Wednesday, in line with a rise in local bonds and stocks as investor appetite for riskier assets was boosted.
At 0650 GMT, the rand traded 0.25 percent firmer at 14.0600 per dollar, after closing at 14.0950 in New York.
The currency is expected to trade in a range of 13.9500 to 14.2000 to the dollar on Wednesday, NKC African Economics said in a note.
Investors remain skittish on the rand as escalating worries about slowing global growth and the U.S.-Sino trade war tensions continue to be the focus.
South Africa-focused investors were awaiting the release of the country’s headline consumer inflation data for October, due at 0800 GMT, with the market expecting a 5.1 percent increase year on year from 4.9 percent in September.
Government bonds were firmer early on Wednesday, with the yield on the benchmark instrument due in 2026 down 2.5 basis points at 9.110 percent.
Stocks were set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.72 percent.
Reporting by Nomvelo Chalumbira; Editing by Rashmi Aich
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