Rand strengthening ahead Fed minutes as Asian stock markets rally
The rand was trading at R16.38 per dollar in early trade, more than 0.1% higher from its previous close.
The rand was marginally higher in early trade on Wednesday, ahead of the release of local retail sales numbers, and US Federal Reserve minutes later in the day.
The rand was trading at R16.38 per dollar at 0820, up greater than 0.1% from its previous close.
The June retail sales figures will be released at 13:00, with Reuters polled analysts forecasting a 0.4% increase compared to a 0.1% gain in May.
Other data suggests that South Africa's economy struggled to gain traction in the second quarter, owing to catastrophic rains and widespread power outages.
The Fed minutes, which are expected around 20:00, should give more clarity on the US interest rate trajectory and be a major driver in global markets.
The yield on the South African government's benchmark 2030 bond fell 2 basis points to 10.060% in early trade.St0
Stocks rally in Asian markets
In the meantime, stocks in Asia gained on Wednesday amid speculation that China may use more stimulus to prop up its faltering economy and as strong US profits delivered a boost for investor sentiment.
A 1% increase in Japan, combined with gains in China and Hong Kong, has put MSCI Inc.'s Asia-Pacific share index on track for a more than two-month high. Futures on the S&P 500 and Nasdaq 100 fluctuated, while European contracts surged. In China, where the obstacles of a property downturn and Covid limits are growing, Premier Li Keqiang has instructed local officials from six key provinces that contribute 40% of the economy to strengthen pro-growth initiatives.
Tuesday's gains in the US stock market were bolstered by earnings results from retailers Walmart Inc. and Home Depot Inc. Profits at companies have prompted an equity rally from June lows.
