JOHANNESBURG, Feb 11 – South Africa’s rand strengthened in early Wednesday trading as the U.S. dollar retreated, with markets positioning ahead of closely watched U.S. labour market data.
By 0700 GMT, the rand was trading at 15.9225 per dollar, about 0.2 percent firmer than its previous close. The move tracked broader dollar weakness, with the greenback down roughly 0.3 percent against a basket of major currencies.
The dollar’s decline followed softer than expected U.S. retail sales figures. December data showed consumer spending unexpectedly stalled, weighed down by reduced purchases of vehicles and other high value goods. The slowdown signaled a more cautious U.S. consumer outlook heading into the new year, tempering growth expectations.
Attention now shifts to the January non farm payrolls report due later in the day, alongside U.S. inflation data scheduled for release on Friday. Both indicators are expected to shape expectations around the Federal Reserve’s next monetary policy moves.
On the domestic front, South Africa’s annual mining conference in Cape Town continues this week, drawing global investors and policymakers to discuss sector prospects.
Market participants are also awaiting December mining and manufacturing production figures from Statistics South Africa on Thursday.
On the Johannesburg Stock Exchange, the Top 40 index edged up 0.1 percent in early trade. In fixed income markets, the benchmark 2035 government bond strengthened, with its yield easing 2.5 basis points to 7.955 percent.
