Rand softens as global risks loom

Johannesburg - The rand weakened early on Wednesday ahead of domestic consumer price inflation data and as investors waited for clues from a Federal Reserve meeting on when US interest rates are likely to rise.

The wrangling over the Greek debt crisis also kept broader sentiment leaning towards safe haven assets as Prime Minister Alexis Tsipras accused Greece's creditors on Tuesday of trying to "humiliate" Greeks with more cuts.

READ: Tsipras: Lenders want to 'humiliate' Greece

At 08:42 the rand was trading 0.35% softer at R12.4100/$ compared with its New York closing level on Tuesday.

"The rand has not yet reacted to the unfolding Greek tragedy but will certainly respond to tonight’s Fed statement. Risks are evenly spread, with large moves quite feasible," John Cairnsof Rand Merchant Bank said in a note.

The Fed's statement is due at 20:00, followed half an hour later by chair Janet Yellen's news conference where investors will look for clues on the timing of lift off for interest rates.

On the domestic front, May CPI and April retail sales data were due to be released later in the session.

In fixed income, the yield for the 2026 benchmark was up 2 basis points to 8.43%.