Rand steadies as South Africa awaits inflation data

Source: Reuters.

The rand is trading near the upper end of its recent range at R16.25 ahead of today's local inflation numbers, Andre Cilliers, currency strategist at TreaasuryONE, notes.

Markets are expecting a year-on-year print of 4.5%, down from last month's 5.0% number.

The dollar is trading largely unchanged as bets on the Fed keeping interest rates unchanged at next month's FOMC meeting rise to 67%, while oil prices approach $92.00 per barrel as US-Iran negotiations stall.

Cilliers adds: "US Treasury yields remain elevated, with the 30-year yield still near a 19-year high as concerns over the growing US fiscal debt and long-term sticky inflation weigh. Today's Fed FOMC minutes could provide some insight into the central bank's next monetary policy moves."

Meanwhile, Gold is steady around the $4,340 mark. Cilliers adda, Gold is trading fairly flat this morning, with losses due to surging US bond yields and global inflation fears being cushioned by falling Fed rate hike bets and rising geopolitical risks.

“Continued global central bank purchases of gold as reserve collateral against ballooning US federal debt are further supporting the yellow metal,” he said.