At the start of the trading day on Monday, the South African rand remained stable, positioning itself for the upcoming release of domestic and global interest rate updates scheduled for this week.
The South African rand maintained its stability at 18.9800 against the US dollar at 0718 GMT, mirroring its previous closing rate of 18.9850. At the same time, the US dollar remained close to its previous closing level of 105.260 against a basket of global currencies.
The South African Reserve Bank (SARB) is scheduled to disclose its interest rate verdict on Thursday, alongside providing indications about the nation’s forthcoming interest rate direction.
“Andre Cilliers, a currency strategist at TreasuryONE, anticipates that the SARB will likely maintain the current interest rates without alterations but maintain a vigilant stance, driven by apprehensions regarding a potential inflation increase attributable to the elevated fuel prices,” stated Andre Cilliers.
Furthermore, Andre Cilliers noted that the U.S. Federal Reserve is also projected to retain its existing interest rates during its upcoming meeting on Wednesday. However, he anticipates that the Federal Reserve will adopt a hawkish stance, influenced by the elevated oil prices and increased inflation figures.