As investors anticipated financial data from the United States later this week that would have an impact on the Federal Reserve’s ranking-hiking cycle, the South African rand fell on Monday.
The rand was down 0.28% due to its Friday finish as of 1512 GMT, trading at 18.1550 vs the dollar. Meanwhile, the value of the US dollar decreased by 0.18% on a basket of foreign currencies.
a report by DailyFX analyst Warren Venketas, the decline in risk tolerance for the rand is mostly attributable to the expectation of high-impact data due for publication this week, which will probably influence the South African Reserve Bank’s response before the Federal Reserve’s interest rate decision.
Additionally, this week features South Africa’s Independence Day on Thursdays and a second official holiday, Workers’ Day, the following Monday. As a result, many regional traders will be absent from their workplaces from Wednesday’s market closing until next Tuesday.
Investors on the international markets will pay close attention to a series of the policy of the central bank meetings that may offer clues as to when the ongoing global increases in lending rates may come to a halt.