JOHANNESBURG, July 14 (Reuters) - The South African rand gained on Tuesday against a weaker dollar after U.S. consumer inflation slowed more than expected in June, ruling out an interest rate increase from the Federal Reserve this year.
-
The rand was trading at 16.3725 against the dollar by 1255 GMT, roughly up 0.6% from its previous close.
-
The U.S. dollar weakened about 0.5% against a basket of currencies after U.S. Labor Department data showed consumer prices at 3.5% in the 12 months through June, slowing from 4.2% in May.
-
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy in addition to domestic data.
-
South Africa's mining output fell 5.4% year-on-year in May, compared with an 8% increase in April, Statistics South Africa data showed.
-
On the Johannesburg Stock Exchange, the Top-40 index was up about 0.2%.
-
South Africa's benchmark 2035 government bond was weaker, as the yield rose 7.5 basis points to 8.42%.
Reporting by Sfundo Parakozov and Nilutpal Timsina Editing by Joe Bavier and Sharon Singleton
Source: Reuters