JOHANNESBURG (Reuters) – South Africa’s rand strengthened on Wednesday, ahead of a key U.S. inflation report that could provide clues on the Federal Reserve’s interest rate path.
At 0805 GMT, the rand traded at 18.8775 against the dollar, about 0.3% firmer than its previous close.
Investors were awaiting the U.S. Consumer Price Index (CPI) report due later in the day to see if it supports the Fed’s cautious stance on rates.
“Today’s US CPI data (is) expected to influence monetary policy and bond yields globally,” said Andre Cilliers, currency strategist at TreasuryONE.
On the stock market, the Top-40 index was up 0.6%.
South Africa’s benchmark 2030 government bond was stronger, with the yield down 6 basis points to 9.245%.
(Reporting by Bhargav Acharya; Editing by Frances Kerry)
