South African rand pares losses before Powell speech

At 1150 GMT, the rand traded at 18.6475 against the dollar , about 0.9% stronger than its previous close. The rand has had a turbulent week, contributing to its over 4% losses month-to-date.On Friday, Jerome Powell will give a speech at the Jackson Hole Symposium for global central bankers. The market is bracing for a hawkish tone from Powell, which could point to further U.S. rate hikes.

"Given how high U.S. Treasury yields have risen in recent weeks, the risk is that Powell's comments are interpreted by the market as dovish, even if he tries to maintain a balanced or even slightly cautious tone," Danny Greeff of ETM Analytics told Reuters. The risk-sensitive rand often takes cues from global factors like U.S. monetary policy in the absence of domestic economic data cues.South Africa's benchmark 2030 government bond was weaker, with the yield up 2 basis points at 10.220%.last traded around 0.3% higher from its Thursday close.

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South African rand extends losses before Powell speechThe South African rand extended losses in early trade on Friday, ahead of a speech by the U.S. Federal Reserve Chair, which could set the tone for future interest rate hikes in the world's biggest economy.
Source: ReutersAfrica - 🏆 31. / 53 Read more »