S.A. Rand Weakens as Census Data Week Begins

The South African rand faced early trade depreciation on Monday due to global market risk aversion resulting from Middle East turmoil, coinciding with the anticipation of the national census data release scheduled for this week as reported by ZAWYA.

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At 0705 GMT, the rand was trading at 19.4000 against the dollar, marking a 0.6% decrease from its Friday closing rate.

Meanwhile, the safe-haven dollar exhibited approximately a 0.25% increase against a basket of global currencies.

South Africa’s statistics agency is set to unveil data from the country’s 2022 census on Tuesday, representing the fourth post-apartheid population and housing survey and the first in over a decade. This comprehensive analysis is expected to provide valuable insights into the nation’s economy, facilitating improved planning and development in Africa’s most industrialised economy.

Local investors will scrutinise this data for indications regarding South Africa’s economic condition in the post-pandemic era and its ongoing struggle with high unemployment rates.

Market risk is poised to escalate starting Wednesday as the U.S. Federal Reserve releases the minutes from its September meeting, as noted by analysts from Rand Merchant Bank. Additionally, investors will closely monitor inflation data anticipated from the world’s largest economy on Thursday for clues about the Fed’s future interest rate decisions.

In the absence of significant local data points, the rand, along with other risk-sensitive currencies, frequently responds to global developments, such as U.S. economic data.

On the Johannesburg Stock Exchange, equities opened slightly higher, with the blue-chip Top-40 index showing a 0.2% increase.

South Africa’s benchmark 2030 government bond saw early declines, with the yield rising by 5.5 basis points to 10.945%.

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Photo: Facebook / @ SA Reserve Bank