JOHANNESBURG: The South African rand strengthened early on Thursday, ahead of the release of domestic producer inflation data.

At 0630 GMT the rand traded at 17.7575 against the dollar , 0.4% stronger than its previous close.

The dollar index, measuring performance against a basket of currencies, was last down 0.08%.

Statistics South Africa will release the July producer price index at 0930 GMT. Economists polled by Reuters expect the year-on-year figure to be at 4.5%.

South Africa’s central bank will hold an annual lunch with journalists in Johannesburg on Thursday, with the bank’s governor, Lesetja Kganyago, expected to speak on the health of the domestic economy.

South African rand slips ahead of domestic data releases

Local investors will then shift focus to July money supply, trade and budget balance data on Friday.

South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 1.5 basis points at 9.125%.