JOHANNESBURG (Reuters) – The South African rand strengthened on Thursday after the U.S. saw higher-than-expected consumer inflation data but a surge in first-time applications for unemployment aid kept the Federal Reserve on track to cut interest rates next Wednesday.
At 1609 GMT, the rand traded at 17.3750 against the dollar, roughly up 0.6% on Wednesday’s close and paring early losses following the release of mixed domestic data.
The dollar last traded about 0.3% weaker against a basket of currencies, after U.S. consumer prices came in higher than expected in August while the annual increase in inflation was the largest in seven months.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.
South African Reserve Bank data earlier showed that the country’s current account deficit widened to 1.1% of gross domestic product (GDP) in the second quarter of 2025, from a revised 0.6% deficit in the first quarter.
The country’s statistics agency released July mining and manufacturing production figures.
Mining output rose 4.4%, better than the 3.2% expected by economists polled by Reuters while manufacturing fell 0.7%, more than the predicted 0.6%.
On the Johannesburg Stock Exchange, the Top-40 index closed up 0.3%.
South Africa’s benchmark 2035 government bond marginally gained, as the yield fell one basis point to 9.38%.
(Reporting by Sfundo Parakozov and Anathi Madubela; Editing by Edwina Gibbs, Alexandra Hudson)
