Rand holds firm within range

Johannesburg - The rand firmed within a range against the dollar early on Wednesday, getting a boost from a greenback hurt by the lack of a debt deal out of Washington late on Tuesday.

The rand was up 0.3% on the dollar at R9.9520 by 08:43.

It had closed in New York closer to R10/$, at R9.9815, while the dollar was buoyed by optimism that US lawmakers would reach a deal late on Tuesday to stop the political impasse over raising the debt ceiling before Thursday's deadline.

The lack of a plan by Wednesday trade to avert a US debt default puts some pressure on the dollar with the uncertainty making investors nervous.

Hopes pinned on last ditch efforts by lawmakers to agree on a plan is expected to keep the dollar supported and the rand trading in a range.

"A R9.9000 to R10.000 range is expected until a US budget deal is secured. Whilst the market continues to tentatively put its faith in US lawmakers to ultimately get their act together, the dollar will remain bid and EMEA currencies in tight ranges," said of Informa Global Markets.

Domestic retail sales data for August is due at 13:00, where economists expect growth to have slowed to 1.2% year-on-year, from 2.8% in July as consumers struggle under rising fuel prices and over-indebtedness.

Yields on government benchmark bonds were steady at 7.94% on 2026 debt.

The Treasury will announce issuance plans for next week's weekly auction at 11:00 .