Rand flat ahead of inflation data

In early trade the rand was at R17.10 against the dollar, unchanged from its previous close.
Image: Waldo Swiegers/Bloomberg

The rand was flat in early trade on Wednesday, ahead of monthly inflation data that is expected to provide investors clues on the central bank’s tightening path.

At 0705 GMT, the rand traded at R17.10 against the dollar, unchanged from its previous close.

Statistics South Africa is expected to publish the consumer price index for June around 0800 GMT. It is likely to show a 7.2% annual increase in the headline figure, above the 6.5% recorded increase in May and the South African Reserve Bank’s target range of 3% to 6%.

“Should this be enough to trigger wagers on a more aggressive Sarb rate-hike trajectory, the rand could find some support into tomorrow’s monetary policy update,” ETM Analytics said in a note.

The South African Reserve Bank is due to announce an interest rate decision on Thursday.

On the stock market, the Top-40 index was up 0.51% while the broader all-share rose 0.46% in early trade.

The government’s benchmark 2030 bond was flat in early deals, with the yield at 11.110%.

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