Rand weakens before inflation data’s release

The rand weakened early on Wednesday, giving back some of the gains of from the day before, as investors took profits before a local inflation data release.

Statistics South Africa publishes September inflation figures at 10:00. Price growth is expected to remain benign, supporting the carry-trade attraction of the currency.

At 07:45, the rand was down 0.27% at 14.62 per dollar, slipping from Tuesday’s one-month best of 14.57 reached during an emerging-market rally and easing fears around state power company Eskom.

The crisis-hit utility got additional R59 billion lifeline by parliament on Tuesday, after imposing another round of nationwide blackouts last week.

Read: SA approves R59bn bailout for debt-laden Eskom

Bonds were also weaker, with the yield on the benchmark government issue due in 2026 up 1 basis point to 8.215%.