Rand inches up before retail sales data

The rand inched up in early trade on Wednesday, reversing some of the previous day’s losses, before the release of retail sales data.

At 10:10, the rand traded at R19.03 against the dollar.

The dollar last traded around 0.1% weaker against a basket of global currencies.

Statistics South Africa will publish June retail sales figures at 1100 GMT, with analysts polled by Reuters expecting a decline of 0.2% year on year.

“Retail is vital to a consumption-driven economy such as South Africa and has been weighed down by the cost-of-living crisis,” ETM Analytics said in a research note.

Retail sales have contracted in annual terms in every month since December 2022, with rolling power blackouts a contributing factor.

But an easing in the intensity of the power cuts in June may have provided some support to sales, ETM Analytics added.

South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 2 basis points to 10.335%.