Rand steady as market awaits CPI data, repo rate decision later in week

(iStock)
(iStock)

After strengthening on Monday, the rand was steady in early trade on Tuesday, as local markets awaited the release of the Consumer Price Index data on Wednesday and the repo rate decision by the SA Reserve bank on Thursday.  

The local currency opened at 13.22/$ and was trading at R13.23 to the greenback at 11:05. 

"Locally ,we expect the market to start gearing up for the CPI data due on Wednesday, with the inflation rate expected to increase to 4.8%," Bianca Botes of Peregrine Treasury Solutions said in a morning note. "While the fuel hikes, coupled with a weaker rand, are certainly expected to prop up inflation, the SA Reserve Bank is expected to keep interest rates on hold for now."

StatsSA will release CPI data on Wednesday at 10:00. The SARB's monetary policy committee will be announcing its latest repo rate decision on Thursday afternoon. The bank kept the rate unchanged at 6.5% at its last meeting. 

Andre Botha, senior currency dealer at TreasuryONE, said in a morning note that the rand was still enjoying the "little reprieve it received last week".

"Should the momentum continue we could see the rand testing lower; however, there is always some politics that could disrupt the market."

NKC African Economic said the local currency's expected trading range would be between R13.05/$ and R13.35/$.

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