JOHANNESBURG, June 23 (Reuters) – The South African rand weakened in early trade on Tuesday under pressure from a stronger U.S. dollar ahead of central bank data expected to shed light on the economic outlook.
- At 0610 GMT, the rand traded at 16.4525 against the dollar, down 0.3% from its previous close.
- The dollar remained strong as traders sought more dovish Federal Reserve stance, while oil prices edged lower as investors saw signs of progress in restoring the flow of crude through the Strait of Hormuz following US-Iran peace talks.
- The US lifted sanctions on Iran for 60 days starting Monday after the first talks under the nascent peace deal, while officials reported a sustained reduction in fighting in Lebanon under the agreement aimed at ending hostilities across the region.
- At 0700 GMT, the South African Reserve Bank will publish the country's key business cycle indicators for April, including data on vehicle sales, business confidence, money supply and other factors.
- Later in the week, investors' attention will turn to producer inflation data for more clues on the health of Africa's most industrialized economy.
- South Africa's benchmark 2035 government bond was weaker in early deals, with the yield rising 4 basis points to 8.32%.
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