The South African rand was steady on Monday as investors looked ahead to inflation data later this week for clues on the health of Africa’s most industrialised economy.
- At 1320 GMT, the rand traded at 16.2050 against the dollar, unchanged from its previous close.
- Statistics South Africa is due to release July inflation data on Wednesday, with analysts polled by Reuters expecting a cooler reading of 4.5%.
- Headline inflation accelerated to a two-year high of 5.0% in June from 4.5% in May, driven mainly by transport costs.
- Economists at Nedbank said they expected it to slow to 4.3%, citing lower transport costs resulting from a decline in fuel prices.
- The U.S. dollar edged lower against a basket of major currencies on Monday, while gold prices rose as a weaker dollar and fading expectations of a U.S. Federal Reserve rate hike next month supported bullion.
- On the Johannesburg Stock Exchange, the Top-40 index was last up 0.3%.
- South Africa’s benchmark 2035 government bond was weaker, as the yield rose 4.5 basis points to 8.475%.
