Rand. Picture: REUTERS
Rand. Picture: REUTERS

The rand was flat against major global currencies on Tuesday morning, with foreign exchange markets in general showing little direction, as investors waited for fresh catalysts.

A historic summit between the US and North Korea is in the spotlight.

US inflation data, expected at 2.30pm local time, is also being watched, coming ahead of a US Federal Reserve monetary policy announcement on Wednesday.

The Fed is widely expected to raise interest rates for the second time in 2018, while markets will be looking for guidance on its future policy.

Local focus was on possible damaging industrial action, with threats of stoppages at Eskom on Thursday and a possible strike at South African Airways (SAA), said Rand Merchant Bank’s Isaah Mhlanga. The public sector wage deal had concluded without a strike, but with a deal that cost R30bn more than expected.

Local bonds were weaker in line with the rand, with the yield on the benchmark R186 bond last bid at 9.07% from 8.98%.

At 9.47am, the rand was at R13.1587 to the dollar from R13.1676, R15.5194 to the euro from R15.5154 and R17.6221 to the pound from R17.6187. The euro was at $1.1794 from $1.1785.