South African rand falls as dollar hovers near 2-week high
JOHANNESBURG (Reuters) - South Africa's rand weakened against the dollar in early trade on Wednesday, as the greenback hovered near a two-week high buoyed by robust U.S. economic data.
At 0612 GMT, the rand traded at 14.2200 per dollar, 0.34 percent weaker than its New York close of 14.1725 on Tuesday.
Markets were also a bit cautious over the Sino-U.S. trade dispute and are awaiting developments in talks between the two major economies.
"The local unit has remained largely rangebound during the past few days, trading between R14.12 and R14.28 to the greenback with upbeat data from the U.S. capping the rand's buoyant momentum," Bianca Botes, an analyst at Peregrine Treasury Solutions, said in a note.
"Markets are seeking some fresh developments in the U.S.-China trade talks to provide solid directional guidance."
On Tuesday, the dollar rose as unexpectedly strong data on U.S. services industries and new home sales helped sooth some fears about the state of the world's top economy.
The dollar index, which measures the greenback against a basket of six major peers, gained for the fifth straight session overnight, hitting a two-week high of 97.008. It last traded at 96.93 on Wednesday.
Locally, the focus is on the South African Chamber of Commerce and Industry's monthly business confidence index due at 0930 GMT.
In fixed income, the yield on the benchmark instrument due in 2026 jumped 5 basis points to 8.715 percent in early trade.
waiting for a buy signal
USDZAR
14.08, for us to take a long position.
www.maginco.co.za
JOHANNESBURG (Reuters) - South Africa's rand weakened against the dollar in early trade on Wednesday, as the greenback hovered near a two-week high buoyed by robust U.S. economic data.
At 0612 GMT, the rand traded at 14.2200 per dollar, 0.34 percent weaker than its New York close of 14.1725 on Tuesday.
Markets were also a bit cautious over the Sino-U.S. trade dispute and are awaiting developments in talks between the two major economies.
"The local unit has remained largely rangebound during the past few days, trading between R14.12 and R14.28 to the greenback with upbeat data from the U.S. capping the rand's buoyant momentum," Bianca Botes, an analyst at Peregrine Treasury Solutions, said in a note.
"Markets are seeking some fresh developments in the U.S.-China trade talks to provide solid directional guidance."
On Tuesday, the dollar rose as unexpectedly strong data on U.S. services industries and new home sales helped sooth some fears about the state of the world's top economy.
The dollar index, which measures the greenback against a basket of six major peers, gained for the fifth straight session overnight, hitting a two-week high of 97.008. It last traded at 96.93 on Wednesday.
Locally, the focus is on the South African Chamber of Commerce and Industry's monthly business confidence index due at 0930 GMT.
In fixed income, the yield on the benchmark instrument due in 2026 jumped 5 basis points to 8.715 percent in early trade.
waiting for a buy signal
USDZAR
14.08, for us to take a long position. www.maginco.co.za