Rand steady on Wednesday

The rand was steady in early trade on Wednesday as investors awaited the release of consumer inflation and retail sales numbers.

At 08:40, the rand traded at R17.27.

Statistics South Africa is due to publish November consumer inflation figures around 0800 GMT, and October retail sales around 1100 GMT.

Economists polled by Reuters expect inflation will fall to 7.5% in annual terms in November from 7.6% in October, and for October retail sales to contract 0.5% year on year versus a 0.6% decline the previous month.

On global markets, the focus was on a policy announcement by the US Federal Reserve later in the day.

Risk-sensitive currencies like the rand got a boost on Tuesday as US consumer prices rose less than expected for a second straight month in November, clearing the way for the Fed to start scaling back its interest rate hikes.

Also underpinning the rand, on Tuesday South Africa’s governing African National Congress party stopped an impeachment process from being launched against President Cyril Ramaphosa.

The government’s benchmark 2030 bond was firmer early on Wednesday, the yield falling 7 basis points to 10.300%.