South African rand slips ahead of local inflation data

JOHANNESBURG: South Africa’s rand slipped in early trade against the dollar on Wednesday as risk sentiment soured ahead of local inflation data.

At 0619 GMT, the rand traded at 18.6625 against the dollar , 0.2% weaker than its previous close.

The dollar index was last up 0.18% against a basket of major currencies.

At 0800 GMT, investors will turn their focus towards Statistics South Africa, which will release inflation data for October.

Analysts polled by Reuters expect year-on-year inflation at 5.5%.

An interest rate decision by the South African Reserve Bank (SARB) is due on Thursday.

South African rand firms as risk sentiment improves

“The SARB’s MPC is still expected to keep rates unchanged tomorrow while keeping a cautious outlook on inflation,” said Andre Cilliers, currency strategist at TreasuryONE.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 4.5 basis points to 9.950%.