CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

South African rand weakens ahead of producer inflation data

By Reuters News

JOHANNESBURG, Oct 29 (Reuters) - The South African rand weakened in early trade on Thursday as declines in gold and platinum prices weighed on the commodity-linked currency, while investors looked ahead to local producer inflation data due later in the day.

  • The rand traded at 16.65 against the dollar at 0607 GMT, about 0.4% weaker than its previous close

  • South Africa's key export commodities came under pressure, with gold falling nearly 1% and platinum dropping 1.5% as investors assessed signals from the US Federal Reserve and Chair Kevin Warsh after policymakers left interest rates unchanged

  • Data released by the South African Reserve Bank on Thursday showed growth in broad money supply (M3) was 7.93% year-on-year in September, down from 8.89% in August, while private-sector credit growth was 6.23%, down from 7.47%

  • Investors' attention now turns to September producer price inflation figures , due at 0930 GMT. Economists polled by Reuters expect producer inflation to accelerate to 5.7% year-on-year from 5.0% in August

  • Market participants will also monitor a batch of month-end economic releases on Friday, including trade balance ZATBAL=ECI and budget balance data ZABUD=ECI, for further clues on the health of the economy

  • South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 2.5 basis points to 8.56%

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.