South Africa's rand softened against the dollar early on Tuesday, ahead of local trade and budget balance figures. At 0739 GMT, the rand traded at 18.7025 against the dollar , 0.38% weaker than its previous close. Local investor eyes will be on South Africa's National Treasury and revenue service department, which will release March budget and trade balance figures respectively later in the day.
Earlier, South African Reserve Bank data showed South Africa's March M3 money supply growth was at 6.85% year-on-year and credit growth at 5.18% year-on-year.
M3 is a measure of money supply released by the central bank, which includes all currency in circulation, bank deposits and debt securities, among others.
Global market focus will be on the Federal Reserve, which begins its two-day monetary policy meeting on Tuesday. It is expected to hold interest rates.
"US monetary policy remains the main driver for markets and traders are wary of a hawkish Fed and higher-for-longer outlook," said Andre Cilliers, currency strategist at TreasuryONE.
The dollar index was last trading up 0.16% against a basket of currencies. On the Johannesburg stock market, the Top-40 (.JTOPI), opens new tab and the broader all-share (.JALSH), opens new tab indices were both little-changed in early trade. South Africa's benchmark 2030 government bond was stronger, with the yield down 2.5 basis points to 10.640%.
