27-05-2025
South African rand weakens, interest rate decision ahead
JOHANNESBURG, May 27 (Reuters) - South Africa's rand weakened early on Tuesday, with investors focussed firmly on the central bank's impending interest rate decision later this week.
At 0827 GMT, the rand traded at 17.9225 against the dollar , about 0.3% softer than its previous close.
Economists polled by Reuters expect the South African Reserve Bank (SARB) to cut its main interest rate by 25 basis points to 7.25% on Thursday.
South Africa's inflation stayed below the SARB's target range of 3% to 6% in April while the local currency has recovered from its recent losses to trade below 18 per dollar.
Central bank data earlier in the day showed South Africa's composite leading business cycle indicator rose 1.1% month on month in March.
On the stock market, the Top-40 (.JTOPI), opens new tab index was little changed.
South Africa's benchmark 2030 government bond was stronger in early trading, with the yield down 2.5 basis points at 8.865%.
