Rand little changed before local inflation data

The South African rand was broadly unchanged in early trade on Wednesday, before the release of local inflation data that could influence an interest rate announcement on Thursday.

At 0630 GMT, the rand traded at R17.89 against the dollar.

On Tuesday it gained about 0.9% against the greenback, supported by precious metals prices among other factors.

June consumer inflation figures will be released at 0800 GMT, with analysts polled by Reuters predicting a decline to 5.6% in year-on-year terms, down from 6.3% in May.

Wednesday’s reading could see inflation fall back within the central bank’s target range of 3% to 6% for the first time in 14 months, bolstering the case for the central bank to keep its main interest rate steady on Thursday after 10 hikes in a row.

In a poll published last week the majority of economists predicted the South African Reserve Bank would keep rates on hold, but a significant minority thought the bank would opt for another 25-basis-point hike.

South Africa’s benchmark 2030 government bond was slightly firmer in early deals, the yield falling 1.5 basis points to 10.310%.