South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration Acquire Licensing Rights
JOHANNESBURG, Nov 14 (Reuters) – The South African rand strengthened in early trade on Tuesday ahead of local unemployment figures and as markets await U.S. inflation data, analysts said.
At 0655 GMT the rand traded at 18.7050 against the dollar , about 0.2% stronger than its previous close.
The dollar last traded about 0.03% stronger against a basket of global currencies.
Statistics South Africa is scheduled to release the country’s third-quarter unemployment data (ZAUEMP=ECI), (ZAUNR=ECI) at 0930 GMT.
Later in the day investors will turn their attention to U.S. consumer price index (CPI) figures for hints on the health of the world’s biggest economy.
“Markets (are) treading water ahead of US CPI … markets are in holding mode as caution sets in,” said TreasuryONE currency strategist Andre Cilliers.
The US inflation reading could give clues on the Federal Reserve’s future interest rate path after mixed messages in recent weeks.
“(It) all comes back to whether the Fed will pivot to a more dovish stance,” Rand Merchant Bank analysts said in a research note.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy as well as local data points.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 1 basis point at 10.405%.
Reporting by Tannur Anders
Editing by David Goodman
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