South African rand edges up ahead of month-end economic data

JOHANNESBURG: The South African rand edged up in early trade on Wednesday ahead of a ​batch of month-end domestic economic data that ‌could provide fresh signals on the health of Africa’s largest economy.

At 0716 GMT the rand traded at 16.3575 ​against the dollar , up roughly 0.3% from its ​previous close.

Data from the South African Reserve ⁠Bank showed M3 money supply growth accelerated to ​8.89% in August from 8.57% in July. Private ​sector credit growth rose to 7.47% from 7.41% in July, exceeding the 6.90% forecast in a Reuters poll.

Later on Wednesday, ​the National Treasury, Statistics South Africa and ​the South African Revenue Service are due to release budget ‌balance, ⁠producer inflation and trade balance figures respectively.

On the Johannesburg Stock Exchange, the Top-40 index was flat in early trade.

South Africa’s benchmark 2035 government bond strengthened, ​as the ​yield fell ⁠7 basis points to 8.765%.

In common with other risk-sensitive currencies, the rand often ​takes cues from global drivers such ​as US ⁠economic indicators and monetary policy.

The greenback softened against a basket of currencies as investors awaited US ⁠inflation ​data for clues on the Federal ​Reserve’s next policy move.

The US personal consumption expenditures price ​index is due at 1230 GMT.