South African rand slightly firmer, producer inflation in focus

JOHANNESBURG: The South African rand was slightly stronger in early trade on Wednesday as the dollar slipped on global markets, before the release of producer inflation figures later in the day.

At 0630 GMT, the rand traded at 18.3325 to the dollar, up about 0.2% on its Tuesday close.

The dollar was down about 0.1% against a basket of currencies. Statistics South Africa will publish the March producer price index at 0930 GMT, shedding further light on inflationary pressures in Africa’s most industrialised economy.

Analysts polled by Reuters expect producer inflation to fall to 10.95% in annual terms from 12.2% in February, but in month-on-month terms they see it rising to 1.4% from 0.6% in February.

South African rand slips as leading indicator falls

South Africa’s central bank said on Tuesday in a biannual monetary policy document that elevated core inflation was expected to slow the pace of disinflation in the near term.