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The rand was flat early on Monday, however its latest resilience within the face of hawkish indicators from international central banks may very well be examined by warnings that Russia may invade Ukraine at any time.
At 0637 GMT, the rand traded at R15.22 in opposition to the greenback, the identical as its shut on Friday.
The US on Sunday stated Russia would possibly create a shock pretext for an assault on Ukraine, because it reaffirmed a pledge to defend “each inch” of NATO territory.
Analysts at ETM Analytics stated the rand had been supported of late by South Africa’s sturdy phrases of commerce, comparatively excessive actual yields and contemporary reform pledges by President Cyril Ramaphosa.
However the standoff over Ukraine has the potential to rock international markets, they stated in a analysis observe.
Different potential drivers this week embody January shopper inflation numbers and December retail gross sales on Wednesday. Economists polled by Reuters predict annual inflation will ease to five.7% in January from 5.9% in December, whereas retail gross sales will rise 2.2% 12 months on 12 months in December in comparison with 3.3% in November.
Each releases will present additional clues about worth pressures and the well being of Africa’s most industrialised financial system, as markets attempt to predict whether or not the South African Reserve Financial institution will increase its most important lending charge for the third consecutive time at its subsequent financial coverage assembly in March.
The federal government’s benchmark 2030 bond was additionally little modified early on Monday, with the yield at 9.19%.
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