South African rand recovers from three-month lows

JOHANNESBURG (Reuters) – South Africa’s rand firmed against a weaker dollar early on Tuesday, recovering from the lows it touched in the previous session.

At 0624 GMT, the rand traded at 19.1025 against the dollar, 0.5% stronger than its previous close.

On Monday, the currency sank to its lowest in more than three months.

The dollar was last down about 0.2% against a basket of global currencies.

“The rand remains a passenger along for the ride and will likely take its direction from developments in the dollar,” ETM Analytics said in a note.

This week, investors will focus on consumer and producer price inflation figures for December, which will be released ahead of the South African Reserve Bank’s (SARB) rate decision.

South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 2 basis points to 9.695%.

(Reporting by Anait Miridzhanian; Editing by Mrigank Dhaniwala)