South African rand steady before retail sales data

JOHANNESBURG: The South African rand was little changed in early trading on Wednesday, before the release of the country’s retail sales data later in the day.

At 0659 GMT, the rand traded at 17.89 against the dollar , about 0.2% stronger than Wednesday’s close.

Statistics South Africa will publish May retail sales data at 1100 GMT, shedding light on consumer spending patterns in one of Africa’s biggest economies.

Economists polled by Reuters predict retail sales will rise 4.4% year-on-year in May, after a 5.1% increase in April.

South Africa’s rand and stocks slip as lower commodity prices weigh

“Retail sales probably remained relatively robust,” said Nedbank economists in a research note, though they expect a marginal growth of 2.0%.

“The more subdued inflationary environment, lower interest rates, and easing debt service costs have lifted real wages and discretionary spending,” said the note.

South Africa’s benchmark 2035 government bond was slightly weaker in early deals, as the yield rose 1 basis point to 9.87%.