JOHANNESBURG: South Africa’s rand firmed against a weaker dollar early on Thursday, ahead of a US inflation reading that is expected to provide fresh direction for global markets.
At 0620 GMT, the rand traded at 18.6400 against the dollar , about 0.3% stronger than its previous close.
The dollar was last down around 0.1% against a basket of global currencies.
All eyes are on the US consumer price index report due later on Thursday, which could influence the Federal Reserve’s thinking on rate cuts.
South Africa’s monthly manufacturing data is due at 1100 GMT but is unlikely to influence trading, said analysts at ETM Analytics.
South African rand flat as US dollar pauses
Trading in the rand will likely pick up next week as schools reopen and the economy gets back into full swing after the holidays, they added.
South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 0.5 basis points to 9.735%.
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