Picture: FINANCIAL MAIL
Picture: FINANCIAL MAIL

THE rand was weaker at midday on Tuesday in quiet trade ahead of crucial US data set to influence trading levels for the rest of the week.

The US will release its nonfarm-payroll data for March on Friday. A healthy figure would support further US rate increases, with one possible as soon as April. The consensus is for the US economy to have created 210,000 jobs.

Federal Reserve chairwoman Janet Yellen’s speech on Tuesday night would also be closely watched for clues about future rates.

At 11.29am, the rand was trading at R15.5164 to the dollar from R15.4641 at Monday’s close. It was at R17.3504 against the euro from R17.3119 previously, and at R22.1295 against the pound from R22.0262 previously.

The euro was at $1.1183 from $1.1196.

TreasuryOne head of dealing Wichard Cilliers said the week was expected to start off slowly. "Trade in risk assets like the rand and equities will be dominated by global sentiment."

Markets were likely to look for guidance from Janet Yellen’s speech before buying dollar-denominated assets as they positioned themselves for Friday’s nonfarm-payroll numbers, he said.

With US Fed members such as James Bullard suggesting that an interest rate hike in April would be possible, it would be interesting to see if Ms Yellen would continue the collective hawkish sentiment her peers had displayed.

US gross domestic product data released last week for the fourth quarter was revised higher than expected to 1.4% from 1%, but the consumer expenditure and inflation figures for February were uninspiring and contradictory to the hawkish rhetoric of the Fed, Mr Cilliers said.