JOHANNESBURG: The South African rand was little changed in early trade on Monday, ahead of U.S. inflation data due this week that is likely to give clues on the Federal Reserve’s future interest rate path.

At 0630 GMT, the rand traded at 18.4200 against the dollar, near its previous close of 18.4300.

The dollar last traded near its previous close of 105.33 against a basket of global currencies.

Investors are turning their attention towards U.S. inflation data due on Wednesday.

“After last month’s data and continued hawkish speak from Fed officials, interest rates in the US are now likely only to come lower in the third quarter of the year,” RMB market analysts said.

South African rand little changed in early trade

Like other emerging market currencies, the risk-sensitive rand often takes cues from global drivers like U.S. economic data in addition to local data points.

Locally, the Johannesburg Stock Exchange will publish data on foreigners’ trading in South African bonds and equities and the government will hold its weekly auction for Treasury bills on Monday.

South Africa’s benchmark 2030 government bond was flat in early deals, with the yield at 10.515%.