South African Rand companies ahead of busy week for data

JOHANNESBURG, Sept.27 (Reuters) – The South African rand started the week on a stronger footing against the broadly stable dollar, ahead of a series of national economic data this week that should provide a snapshot of the health of the economy .

At 6:05 am GMT, the rand was trading at 14.9000 against the dollar, 0.3% firmer than its previous close.

This week, the focus is on various economic data, including August credit figures, producer price inflation and trade figures, all expected on Thursday.

The week is also rich in speeches from US Federal Reserve policymakers led by President Jerome Powell on Tuesday and Wednesday, where investors will look for clues to the US central bank’s rate hike path.

Two Federal Reserve officials said on Friday they believe the U.S. economy is already fit enough for the central bank to start withdrawing support. Read more

Riskier currencies, such as the rand, thrive on US interest rates that remain low because they benefit from the interest rate differential that increases their attractiveness for what is called the carry trade.

Government bonds weakened in early trades, with the yield on the 2030 instrument rising 9.5 basis points to 9.205%.

Reporting by Olivia Kumwenda-Mtambo Editing by Robert Birsel

Our Standards: Thomson Reuters Trust Principles.