Gold prices steady amid Fed rate cut hopes; Trump-Putin talks awaited
South Africa’s rand remained stable in early trading, as investors digested remarks from U.S. Federal Reserve Chair Jerome Powell regarding potential interest rate cuts. The currency was trading close to its previous day’s close, showing little change as markets awaited further economic indicators from the United States.
The rand was quoted at 18.5125 to the U.S. dollar at 0653 GMT, barely shifting from its Tuesday close of 18.5075. Powell, addressing the U.S. Congress on Tuesday, indicated that the Federal Reserve is not rushing to reduce interest rates. He stated that a rate cut would only be considered if there is a significant drop in inflation or if there are signs of a weakening job market.
Investors are now turning their attention to the U.S. consumer price index data for January, which is scheduled for release at 1330 GMT. The outcome of this report could influence the direction of the rand, as it is a currency that often reacts to global economic shifts, especially those related to U.S. monetary policy.
In the bond market, South Africa’s benchmark 2030 government bond showed signs of weakness in early transactions. The yield, which moves inversely to the bond’s price, rose slightly by 1 basis point, reaching 9.16%.
This movement in the bond market is another indicator of investor sentiment, as they navigate through the global economic landscape and its effects on South African assets.
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