Rand holds steady as traders await producer inflation data
By Aboki Forex —
The South African rand barely moved in early trade on Thursday. Traders are waiting for local producer inflation numbers due later today.
At 0630 GMT, the rand traded at 16.5775 to the dollar. That is almost unchanged from the previous close.
Global markets are also watching a stronger dollar and falling oil prices. The dollar index is near a 13-month high. Traders are betting on a strong U.S. economy keeping short-term interest rates up.
Oil prices have dropped further, nearing levels seen before the Iran war started.
Statistics South Africa will release May producer inflation data at 0930 GMT. Analysts expect producer inflation at 6.7% year on year.
ETM Analytics said in a note that producer price inflation would likely jump. But it warned that falling oil prices might overshadow the data.
South Africa's benchmark 2035 government bond was slightly stronger in early deals. The yield fell 2 basis points to 8.265%.