JOHANNESBURG, Aug 25 (Reuters) – The South African rand weakened on Monday as investors took profits following a recent surge that had driven the currency to its strongest level in nine months.
By 1522 GMT, the rand was trading at 17.5775 per U.S. dollar, nearly 1% lower than its closing value on Friday.
The currency had gained strength on Friday, supported by a decline in the dollar and a recovery in gold prices, after Federal Reserve Chair Jerome Powell signaled a potential rate cut during the central bank’s upcoming September meeting.
Market participants are now turning their attention to upcoming domestic data releases to assess the economic condition of Africa’s most developed industrial economy.
South Africa’s benchmark 2035 government bond also improved, with its yield dropping by 6.5 basis points to 9.575%.
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South African rand weakens as investors await local data signals
JOHANNESBURG, Aug 25 (Reuters) – The South African rand was on the backfoot on Monday as investors booked profits after a rally that took the currency to a nine-month peak. n nAt 1522 GMT the rand traded at 17.5775 against the dollar , almost 1% weaker than Friday’s close. n nSign up here. n nThe risk-sensitive currency rallied on Friday, boosted by a weaker dollar and a rebound in gold prices, after U.S. Federal Reserve Chair Jerome Powell pointed to a possible rate cut at the central bank’s September meeting. n nNow investors are awaiting domestic releases to gauge the health of Africa’s most industrialised economy. n nSouth Africa’s benchmark 2035 government bond also firmed as the yield fell 6.5 basis points to 9.575%. n nReporting by Sfundo Parakozov and Anathi Madubela; Editing by Toby Chopra, Alex Richardson and Alison Williams