South African Rand Little Changed Ahead of Economic Data
South African rand (ZAR) is little changed against the US dollar ahead of key economic data scheduled for release on Thursday. The local unit traded rangebound in yesterday’s session and is little changed this morning, First National Bank (FNB) said in a note.
Traders continue to monitor the broad deterioration in risk appetite, driven by renewed US military strikes on Iran and hotter-than-expected US inflation data, which raised the prospect of further Fed rate hikes.
The rand is trading at R16.53 to the US dollar, R19.07 to the euro and R22.11 to the British pound, First National Bank said in its investors note on Thursday. Escalating tensions in the Middle East weighed on emerging-market currencies as demand for safe havens surged.
US forces strike Iran again in what Washington calls self-defence after Iran attacks. In reaction, oil prices advanced higher as US military strikes for the second consecutive day.
The renewed tensions have effectively reignited fears of supply disruption in the Middle East. Brent crude oil is stable at $94.64/barrel.
Also, the yellow metal softened but has found stability on Thursday, pressured by a firmer dollar amid rising US bond yields following the uptick in the May consumer price index (CPI) print.
US inflation climbed to 4.2% as the energy crisis has persisted since February, when the war in the Middle East began. Trading data show Gold is trading at $ 4,081 per ounce.
On the economic calendar, South Africa’s current account data is due, followed by mining and manufacturing production figures. The market anticipates the European Central Bank’s interest rate announcement, as well as US PPI and jobless claims data scheduled for release at 14:30. South African Rand Climbs Ahead of GDP Data, Bond Auction
