JOHANNESBURG: The South African rand weakened in early trade on Thursday ahead of September producer inflation figures and dragged down by a stronger dollar as US Treasury yields spiked on fears that interest rates will remain high.
At 0624 GMT, the rand traded at 19.2150 against the dollar, about 0.5% weaker than its previous close.
The dollar last traded around 0.2% stronger against a basket of global currencies.
Statistics South Africa will at 0930 GMT publish the country’s Producer Price Index (PPI) for September, giving clues on the health of Africa’s most industrialised economy.
South African rand slightly stronger against muted dollar
Analysts polled by Reuters predict producer inflation of 4.7% year-on-year in September and 1.1% month-on-month.
South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 9.5 basis points to 10.725%.