JOHANNESBURG (Reuters) -The South African rand was subdued in early trade on Tuesday, as a stronger dollar prompted investors to stay away from riskier assets, while local traders remained cautious ahead of key economic data due later this week.
At 0639 GMT, the rand traded at 17.2125 against the dollar, about 0.3% weaker than its previous close.
“The ZAR lost some ground overnight, with the gold price retreating to close to $4000 and also on the back of U.S. operators reducing their hopes of a U.S. cut next month,” said Adam Phillips, treasury specialist at Umkhulu Treasury.
Gold prices fell for a fourth consecutive session on Tuesday, weighed down by a firmer dollar and diminished prospects of a U.S. interest rate cut next month.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.
Domestically focused traders await figures on October consumer inflation and September retail sales, due on Wednesday, followed by the central bank’s interest rate decision on Thursday for clues on the health of Africa’s largest economy.
Economists polled by Reuters expect the Monetary Policy Committee to cut its main lending rate by 25 basis points to 6.75%.
South Africa’s benchmark 2035 government bond was flat in early deals, with the yield at 8.63%.
(Reporting by Anathi Madubela; Editing by Sherry Jacob-Phillips)
