(Reuters) – The South African rand was steady in early trade on Tuesday as investors weighed conflicting signals over potential U.S.-Iran talks and looked ahead to key U.S. labour market data for clues on the Federal Reserve’s interest rate path.
The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.
At 0612 GMT, the rand traded at 16.5150 against the dollar , a whisker away from its previous close.
Conflicting signals from the United States and Iran over the status of talks to end their five-month-old war boosted uncertainty, with the latest attack on shipping near the Strait of Hormuz highlighting risks to global energy flows.
The greenback bounced from a 1-1/2-month low to 100 against a basket of currencies as traders assessed developments in the Middle East, with oil prices also up about 1% after a plunge in the previous session.
“If we are to see some movement [in the rand] this week, that rests with any peace deal between the U.S. and Iranians and the employment data coming out on Friday,” Adam Phillips of Umkhulu Treasury said.
In the absence of major domestic data, the rand, like other emerging market currencies, tends to take direction from global factors, including U.S. economic releases and geopolitical developments.
South Africa’s benchmark 2035 government bond was unchanged in early trade, with the yield holding steady at 8.49%.
Reporting by Nilutpal Timsina; Editing by Andrew Heavens
Our Standards: The Thomson Reuters Trust Principles.