South African rand starts week stronger with inflation data in focus
JOHANNESBURG: The South African rand firmed against the US dollar in early trade on Monday as investors looked ahead to inflation data later this week for clues on the health of Africa’s largest economy. At 0645 GMT the rand traded at 16.1425 against the dollar , up roughly 0.4% from its previous close. Statistics South Africa is due to release July inflation data on Wednesday, with analysts…
The South African rand began the week with strength against the US dollar, as traders monitored upcoming inflation data for insights into the health of Africa's largest economy. By 0645 GMT, the rand was trading at 16.1425 against the dollar, representing a 0.4% increase from its prior close. Statistics South Africa is set to release July inflation figures on Wednesday, with market forecasts calling for a softer reading of 4.5%, according to Reuters' survey of analysts.
June's headline inflation surged to a two-year peak of 5.0%, up from 4.5% in May, primarily due to rising transport costs. Analysts at Nedbank anticipate a more moderate slowdown to 4.3%, citing reduced transport expenses resulting from declining fuel prices. The US dollar weakened against a range of major currencies on Monday, while gold prices ticked upward, buoyed by recent disappointingly weak U.S. economic data that has tempered expectations of an interest rate hike in the United States.
South Africa's benchmark 2035 government bond remained relatively unchanged in early trading, with yields dipping by half a basis point to 8.425%.
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