South African rand slips ahead of US retail data
JOHANNESBURG, Oct 17 (Reuters) -South Africa's rand weakened in early trade on Thursday, ahead of U.S. retail sales figures that could give cues on the Federal Reserve's interest rate path this year.
At 0651 GMT, the rand traded at 17.6850 against the U.S. dollar ZAR=D3, about 0.2% weaker than its previous close.
The dollar =USD last traded about 0.07% firmer against a basket of currencies.
U.S. retail sales figures for September and an interest rate announcement by the European Central Bank are due later in the day.
"This will be an important data set that will offer insight into consumptive demand and whether it has softened enough to warrant the Fed's stance," said ETM Analytics in a research note, referring to the U.S. data.
"Should the U.S. data soften more than expected, the USD may slip back from what has been an extraordinary run," the note added.
Like other risk-sensitive currencies, the rand often takes direction from global drivers like U.S. economic data and monetary policy.
With a light domestic calendar, the rand is likely to trade on dollar movements.
South Africa's central bank governor Lesetja Kganyago will deliver a special lecture at the University of Stellenbosch and President Cyril Ramaphosa will answer lawmakers' questions in parliament.
South Africa's benchmark 2030 government bond ZAR2030= was weaker in early deals, with the yield up 5.5 basis points to 9.285%.
Reporting by Tannur Anders; Editing by Sumana Nandy
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