JOHANNESBURG: The South African rand firmed on Tuesday against the US dollar, which fell to a roughly two-week low after data showed US inflation rose at its slowest pace in 16 months.
At 1514 GMT, the rand traded at 17.7800 against the dollar, about 0.3% stronger than its previous close.
The dollar fell after data showed consumer prices rose in January but posted their smallest annual rise since October 2021, affirming expectations the Federal Reserve may be nearing the end of its monetary policy tightening cycle.
South African inflation and retail sales figures will be published on Wednesday, as well as a business confidence index from the South African Chamber of Commerce and Industry.
Economists polled by Reuters expect annual inflation to fall to 6.9% in January from 7.2% in December, and retail sales to contract 0.1% in December from growth of 0.4% in November.
The Johannesburg Stock Exchange’s All-share index was up 0.11%. Shares in Telkom closed 5.27% higher after it announced cost cutting measures to shore up profits.
South Africa’s benchmark 2030 bond was little changed, with the yield down 1 basis point at 9.84%.
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