South African rand gains before inflation, retail data
- At 0640 GMT, the rand traded at 14.8550 against the dollar, roughly 0.3% stronger than its previous close and erasing some losses from the previous session
JOHANNESBURG: South Africa's rand gained early on Wednesday, before the release of inflation and retail sales data that will give clues about the country's economic recovery from the COVID-19 pandemic.
At 0640 GMT, the rand traded at 14.8550 against the dollar, roughly 0.3% stronger than its previous close and erasing some losses from the previous session.
Statistics South Africa publishes the consumer price index for July around 0800 GMT. It is expected to show a 4.6% annual increase in the headline figure, less than the 4.9% recorded in June and the 5.2% seen in May.
The central bank targets inflation of between 3% and 6%, and it regularly talks about where it is in relation to the midpoint of that band.
Stats SA releases retail sales figures for June around 1100 GMT.
They are expected to be 9.6% higher than the previous year, when sales were severely impacted by coronavirus-linked lockdown restrictions.
Government bonds were also slightly firmer on Wednesday, as the yield on the 2030 bond dipped 2 basis points to 8.88%.
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