South African Rand Weakens Amid US Fed Concerns, Local Data Awaited

The South African rand weakened slightly after reaching a nine-month high, as investors took profits following recent gains fueled by a weaker US dollar and rising gold prices. The rand traded around 17.6 per USD amid cautious sentiment ahead of key domestic economic data releases, including the leading business cycle indicator, producer inflation, money supply, private sector credit, trade balance, and budget balance figures. South Africa's business cycle indicator rose modestly in June, reflecting mixed signals for the country's economy. The Johannesburg Stock Exchange's Top-40 index remained relatively stable, rising about 0.3%, while the yield on South Africa's 2035 government bonds edged higher. Internationally, the US dollar faced pressure after President Trump removed Federal Reserve Governor Lisa Cook, raising concerns over the Fed's independence and expectations of interest rate cuts, which in turn supported gold prices. These developments highlight the sensitivity of emerging markets like South Africa to both domestic economic indicators and global political and monetary policy changes.