(Reuters) – The South African rand softened in early trade on Tuesday after central bank data showed a decline in the country’s foreign reserves last month.
At 0704 GMT, the rand traded at 16.2425 against the dollar , about 0.3% down from its previous close.
South Africa’s net foreign reserves fell to $71.34 billion at the end of June from $73.47 billion in May.
The greenback was steady against a basket of currencies as investors looked ahead to minutes from the U.S. Federal Reserve’s June meeting for insight into Chair Kevin Warsh’s monetary policy direction, while oil prices edged higher as traders tracked supply recovery and demand.
“For the rand, the near-term bias should remain constructive as long as global investors are willing to fund carry and rotate into liquid emerging market assets,” ETM Analytics said in a research note.
On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was down 0.5% in early trade.
South Africa’s benchmark 2035 government bond was weaker in early deals, as the yield rose 2.5 basis points to 8.22%.
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