South Africa's rand up

South Africa's rand firmed on Wednesday as data showed an uptick in consumer inflation but the January figure of 4.5% remained well below the central bank's upper target range, supporting the currency's carry-trade appeal.

Stocks rose, led by gains in mining shares.

At 1500 GMT, the rand was 0.09% firmer at 14.9900, after touching a session high of 14.9280 following the release of the inflation figures.

On the stock market, the Top-40 index was up 0.39% at 52,126, with the broader all-share also rising 0.39% to 57,940.

Leading gainers on the blue-chip index was miner Gold Fields , whose shares rose nearly 10% as bullion climbed towards a seven-year peak on concerns over the global economic impact of the coronavirus.

Shares in Anglo American Platinum also benefited from higher commodity prices, rising 6.72%.

Bonds firmed, with the yield on the 2026 government issue down 2.5 basis points at 7.975%.

Statistics South Africa said headline consumer price inflation quickened in the year to January from 4.0% in December, below the central bank's upper target of 6%.

Low inflation against relatively high lending rates has supported the rand's attractiveness as a carry-trade target with yield-hungry investors happy to ignore local risks for higher returns.

Falling prices, partly due to slack economic activity, have allowed the South African Reserve Bank (SARB) to reduce lending rates to their lowest since 2015, while maintaining a competitive real return rate due to falling rates in the US and developing markets.