JOHANNESBURG (Reuters) – The South African rand softened on Friday with investor focus on the release of domestic consumer price inflation data and a rate-setting meeting next week.
At 1343 GMT, the rand traded at 17.3975 against the dollar, about 0.2% weaker than its previous close.
The currency gained against a weaker dollar on Thursday after a surge in U.S. jobless claims and a modest tick up in inflation kept investors zeroed in on likely Federal Reserve interest rate cuts next week and beyond.
Domestically-focused traders will pay careful attention to CPI data due on Wednesday after South Africa’s statistics agency last month recorded the highest inflation rate since September 2024.
South Africa’s rate-setting meeting on Thursday will offer more clues on price pressures and the overall health of Africa’s most industrialised economy.
The dollar last traded about 0.2% stronger against a basket of other major currencies as concerns over a weak labour market in the United States cemented expectations of multiple Fed interest rate cuts by the end of the year.
On the Johannesburg Stock Exchange, the Top-40 index was last up 0.6%.
South Africa’s benchmark 2035 government bond was slightly firmer, as the yield fell 1.5 basis points to 9.365%.
(Reporting by Sfundo Parakozov and Anathi Madubela; Editing by Editing by Joe Bavier, Kirsten Donovan)
