The South African rand weakened by about 0.75% in early trading on Tuesday, trading at 18.38 against the dollar as investors anticipated June inflation data set to be released on Wednesday and monitored developments in the U.S. presidential race.
U.S. President Joe Biden recently withdrew his bid for reelection and endorsed Vice President Kamala Harris to face Republican Donald Trump in the November election, adding to market uncertainty.
Locally, investors are looking to the upcoming inflation data for indications on the future interest rate path, with forecasts suggesting a slight decrease to 5.1% from May’s 5.2%.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index fell by around 0.4% in early trade. South Africa’s benchmark 2030 government bond also weakened, with the yield rising by 3.5 basis points to 9.6%.