Rand little changed Thursday

The rand was little changed in early trade on Thursday, as the previous day’s rally lost steam before the release of local mining output figures.

At 08:43, the rand traded at R18.13 against the dollar.

The dollar was marginally weaker against a basket of currencies, after slumping on Wednesday on slowing US inflation data that suggested the Federal Reserve may have to raise interest rates only one more time this year.

Wednesday’s US inflation reading fuelled global risk-on sentiment that saw the rand close up 2% on the day.

Statistics South Africa will at 0930 GMT publish the country’s May mining production data. Analysts polled by Reuters predict a 1.4% year-on-year rise in production, lower than a 2.3% increase in April.

April was the first month mining output recorded growth in 14 months.

“While welcome, this outcome was partly a result of statistical factors. Overall production levels remain suppressed, … illustrative of the headwinds the industry faces,” said Rand Merchant Bank analysts in a research note.

South Africa is experiencing its worst rolling blackouts on record, a major drag on power-hungry sectors like mining.

South Africa’s benchmark 2030 government bond was slightly stronger in early deals, the yield down 2.5 basis points to 10.435%.