Rand flat ahead of producer price data

The rand was little changed in early trade on Thursday ahead of the release of the producer price index (PPI) and other data, which will give clues on the health of Africa’s most industrialised economy.

At 0650 GMT, the rand traded at R19.19 against the dollar.

The dollar last traded around 0.08% stronger against a basket of global currencies.

“In the way of data, there is nothing at the moment that is likely to boost the performance of the rand, other than maybe an upside surprise to PPI that prompts speculation of more rate hikes,” ETM Analytics said in a research note.

PPI data is due around 0930 GMT and is forecast to show an increase of 3.7% in August, following a 2.7% increase in July.

At 0800 GMT, the South African Reserve Bank will publish its quarterly bulletin, which will contain foreign direct investment and portfolio investment flows for April to June 2023.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 10.5 basis points to 10.935%.