Rand weakens ahead of Brics, CPI

The rand weakened in early trade on Monday, ahead of a week packed with the Brics summit of emerging market economies and monthly inflation figures.

At 0609 GMT, the rand traded at R19.03 against the dollar, around 0.2% weaker than its previous close.

The dollar last traded flat against a basket of global currencies.

The rand has fallen over 6% against the greenback this month and nearly 12% this year.

From Tuesday to Thursday, South Africa will host the Brics summit of emerging market economies, welcoming leaders from Brazil, Russia, India and China.

Over twenty countries have submitted formal admission requests to join the bloc, with Brics’s potential expansion on the agenda.

On Wednesday, South Africa’s July consumer price index will be published. Inflation was 5.4% in June and within the South African Reserve Bank’s (Sarb) target range of 3%-6%.

The Sarb will use this figure to inform its future interest rate path when it meets in September.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 2 basis points to 10.490%.