SA rand flat

JOHANNESBURG. — The rand was little changed but held a weaker bias against major currencies yesterday morning, as markets waited for risk signals from policy makers and data releases.

Analysts said global rather than domestic events were expected to move the rand, with market focus on the US Federal open market committee meeting today. A Reserve Bank measure of economic expectations for the next six to 12 months was unchanged in May. The Bank’s composite leading business cycle indicator was unchanged at 95.8 in May from April.

The composite coincident business cycle indicator‚ which measures current conditions‚ rose 0,1 percent from April‚ and the composite lagging business cycle indicator‚ measuring past conditions‚ decreased 1,6 percent. Local focus is also on Statistics SA’s second-quarter labour force survey, which is expected at 11.30am.

Foreign exchange markets seemed to be marking time ahead the Fed meeting, Nedbank Corporate Investment and Banking analysts said.

Few expected an interest rate adjustment, but signals on balance sheet normalisation were expected, the analysts said. US second-quarter GDP numbers are due for release on Friday. The data could give further indications of when the Fed will proceed with monetary policy tightening this year.

At 9am‚ the rand was at 12,9684 to the dollar from 12,9624‚ at 15,1201 to the euro from 15,0882 and at 16,8985 to the pound from 16,8847. The euro was at $1,1660 from $1,1641.