Economic news

S.African Rand Gains against Weaker Dollar before U.S. CPI

JOHANNESBURG, July 12 (Reuters) - The South African rand was stronger in early trade on Wednesday against a weaker dollar, ahead of highly anticipated U.S. inflation data that could give hints as to the Federal Reserve's future interest rate path.

At 0613 GMT, the rand traded at 18.4650 against the dollar , around 0.2% stronger than its previous close.

The dollar last traded around 0.2% weaker against a basket of global currencies.

U.S. Consumer Price Index (CPI) data will be released at 1230 GMT, and analysts polled by Reuters predict inflation of 3.1% year on year for June, down from 4.0% in May.

"The Fed's actions have put the brakes on rising prices, which will likely constrain the Fed from lifting rates much further," said ETM Analytics in a research note.

The risk-sensitive rand often takes its cues from global factors in the absence of local economic data points.

South Africa's benchmark 2030 government bond was firmer in early deals, with the yield down 2.5 basis points to 10.700%.

Reporting by Tannur Anders Editing by Alexander Winning

Source: Reuters

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