South African rand steadies ahead of producer inflation data
- The rand traded at 16.5775 against the dollar , little changed from its previous close
JOHANNESBURG: The South African rand steadied in early trade on Thursday as traders looked to local producer inflation data due later in the day, while a stronger dollar and falling oil prices shaped global markets.
At 0630 GMT, the rand traded at 16.5775 against the dollar , little changed from its previous close.
The dollar index held near a 13-month high against a basket of currencies as traders bet on a strong U.S. economy propping up short-term interest rates and waited on key inflation data, while oil prices extended their decline to near levels last seen before the start of the Iran war.
Statistics South Africa will publish May producer inflation numbers at 0930 GMT, with analysts polled by Reuters expecting producer inflation at 6.7% year on year.
ETM Analytics said in a research note that producer price inflation would probably jump but might be overshadowed by falling oil prices.
South Africa’s benchmark 2035 government bond was slightly firmer in early deals, as the yield fell 2 basis points to 8.265%.