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Johannesburg - The rand surrendered early gains against the dollar on Thursday amid uncertainty about the timing of a US interest rate hike.
By 08:39 the rand had slipped 0.11% to R11.4575 against the dollar, after initially rallying to its firmest in four weeks following better-than-expected local retail sales numbers.
A sharp decline in fourth-quarter consumer spending in the US also boosted the local unit as the dollar stumbled, although the respite was short lived.
The weak US data led some market participants to adjust their forecasts of when the US Federal Reserve would being lifting lending rates, prompting divergent investment flows as risk sentiment improved slightly.
"Given the poor US retail sales data the market is still fiercely undecided on the course of action the Fed is going to follow this year," analyst Warrick Butler of Standard Bank said in a morning note.
Yields on government bonds edged up, the benchmark issue due in 2026 adding 1.5 points to 7.495% in early trade.
With no local data scheduled on Thursday analysts expect direction to come from offshore data releases, with US publishing its December producer price index later in the session.
By 08:39 the rand had slipped 0.11% to R11.4575 against the dollar, after initially rallying to its firmest in four weeks following better-than-expected local retail sales numbers.
A sharp decline in fourth-quarter consumer spending in the US also boosted the local unit as the dollar stumbled, although the respite was short lived.
The weak US data led some market participants to adjust their forecasts of when the US Federal Reserve would being lifting lending rates, prompting divergent investment flows as risk sentiment improved slightly.
"Given the poor US retail sales data the market is still fiercely undecided on the course of action the Fed is going to follow this year," analyst Warrick Butler of Standard Bank said in a morning note.
Yields on government bonds edged up, the benchmark issue due in 2026 adding 1.5 points to 7.495% in early trade.
With no local data scheduled on Thursday analysts expect direction to come from offshore data releases, with US publishing its December producer price index later in the session.
