South African rand steady before producer inflation, budget balance data

JOHANNESBURG: The South African rand was steady in early trade on Thursday as investors awaited ​local June producer inflation and budget balance data ‌for fresh signals on the health of the economy.

At 0709 GMT the rand traded at 16.6575 against the dollar , ​a whisker away from its previous close.

Statistics South ​Africa will publish June producer inflation numbers ⁠at 0930 GMT, with analysts polled by Reuters ​expecting the print to inch up to 7.9% year ​on year.

Producer inflation quickened to 7.8% in May, up from 4.8% in April, driven largely by higher petroleum and chemical product ​costs.

“Another strong print would signal continued pipeline pressure ​and increase the risk that the fuel shock spreads into core ‌consumer ⁠prices,” said ETM Analytics in a research note.

Later in the day, the National Treasury will publish budget balance figures.

Like many emerging market currencies, the rand ​is sensitive to ​global risk ⁠sentiment and developments in U.S. monetary policy, in addition to domestic economic indicators.

A ​divided Federal Reserve left interest rates unchanged on ​Wednesday ⁠while Chairman Kevin Warsh reaffirmed the central bank’s commitment to bringing inflation under control.

The US dollar was ⁠last up ​about 0.2% against a basket ​of currencies.South Africa’s benchmark 2035 government bond was flat, with the ​yield at 8.65%.