South African rand weakens, focus on upcoming US data
Updates prices to reflect afternoon trade
JOHANNESBURG, Oct 8 (Reuters) -The South African rand weakened on Tuesday, and is likely to take direction from U.S. inflation data and minutes from the Federal Reserve's September meeting due this week.
At 1525 GMT, the rand traded at 17.58 against the dollar ZAR=D3, 1.12% weaker than its previous close.
Minutes from the Fed's September meeting due on Wednesday are expected to explain the central bank's big rate cut last month, possibly offering further clues to the bank's future path on interest rates.
Focus will then turn to U.S. September inflation figures on Thursday, which could provide signs of disinflation, crucial for shaping Fed policy.
"The USD/ZAR is influenced by U.S. CPI data, the Fed’s monetary policy direction, and the U.S. election," said Andre Cilliers, currency strategist at TreasuryONE.
"The dollar remains strong, supported by solid U.S. jobs data, while the ZAR awaits further clarity on these factors."
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy in addition to local economic indicators.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index .JTOPI closed 0.95% lower.
South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 2.5 basis points at 9.235%.
Reporting by Tannur Anders with additional reporting by Bhargav Acharya; Editing by Clarence Fernandez and Mark Potter
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