Cape Town — The rand ended the week strongly against the US dollar, after data showed that producer prices fell unexpectedly during December, leading to expectations of an early federal reserve cut.
The rand finished the week trading at 18.6050 to the dollar, which was a slight 0.3% stronger than it its previous close. It had been trading at around the 18.6 to 18.7 mark since Monday. The dollar index was last trading up 0.04% against a basket of major currencies after the producer prices data, SABC News reported.
According to Business Recorder, the dollar had held steady against other major currencies, afetr investors weighed the US consumer price inflation report against other market bets that the Federal Reserve will cut rates as early as March.
“The (USD-ZAR) pair looks to close the week in a consolidative way, with one eye on the upcoming US PPI data for further guidance,” said analysts at ETM Analytics.
The rand is set to gain a boost next week when schools reopen and the economy picks up again. Focus will then shift to retail sales and mining production.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 4.5 basis points to 9.690%.
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Compiled by Matthew Petersen
