World Markets

South Africa's rand steadies; focus on global cenbank meetings

Credit: REUTERS/ROGAN WARD

South Africa's rand steadied in early trade on Thursday, in line with global currency markets ahead of some key central bank meetings, and in the absence of new signals from the Sino-U.S. trade war and the Brexit saga.

JOHANNESBURG, Oct 24 (Reuters) - South Africa's rand steadied in early trade on Thursday, in line with global currency markets ahead of some key central bank meetings, and in the absence of new signals from the Sino-U.S. trade war and the Brexit saga.

At 0648 GMT, the rand ZAR=D3 traded at 14.6430 per dollar, not far off its close of 14.6400 on Wednesday.

In the absence of local catalysts, the rand is expected to take direction from global markets.

Market participants await European and U.S. manufacturing numbers due later on Thursday, to gauge the health of the global economy, and a European Central Bank meeting.

Investors also await the U.S. Federal Reserve's meeting on Oct. 29 and 30, at which it is expected to cut its benchmark interest rate for a third consecutive time this year.

"Weak data from the US would see the rand gain additional momentum, potentially breaking below the R14.60 mark," Bianca Botes, treasury partner at Peregrine Treasury Solutions, said in a note.

In fixed income, the yield on the benchmark government bond due in 2026 ZAR186= added 2.5 basis points to 8.23%.

(Reporting by Olivia Kumwenda-Mtambo; Editing by Rashmi Aich)

((Olivia.Kumwenda@thomsonreuters.com; +27 11 595 2817; Reuters Messaging: olivia.kumwenda.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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