South African rand steady before domestic inflation data
JOHANNESBURG: The South African rand was little changed in early trade on Wednesday as investors awaited inflation data that is expected to show a moderation in price pressures. At 0615 GMT, the rand traded at 16.2550 against the dollar , a whisker away from its previous close. Statistics South Africa is due to publish July inflation data at about 0800 GMT. Analysts polled by Reuters expect…
The South African rand remained stable in early trading on Wednesday as market participants awaited inflation data, which is anticipated to indicate a deceleration in price pressures. At 0615 GMT, the currency exchanged hands at 16.2550 per US dollar, only marginally deviating from its preceding close. Statistics South Africa is scheduled to release July inflation figures around 0800 GMT.
According to Reuters' surveyed analysts, inflation is projected to decelerate to 4.5% from 5.0% in June. Nedbank economists credited reduced transport expenses, brought about by a decline in fuel costs, for contributing to the deceleration. They further noted that easing food price pressures, facilitated by lower global food prices, robust domestic agricultural yields, and the waning effect of foot-and-mouth disease on meat prices, offered additional relief.
Additionally, Statistics South Africa is scheduled to release June retail sales data around 1100 GMT. Economists polled by Reuters anticipate retail sales growth to continue at a steady 2.3% annually.
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