JOHANNESBURG (Reuters) -The South African rand held steady in early trade on Monday, with the main focus this week on inflation data that will influence the central bank’s thinking on interest rates.
At 0740 GMT the rand traded at 17.7075 against the dollar, unchanged from Friday’s close.
Statistics South Africa will release June inflation data on Wednesday, with analysts polled by Reuters expecting a modest rise to 3% year on year from 2.8% in May.
“A softer print could open the door for one last rate cut this year, while a firmer number would push that possibility further out,” said Andre Cilliers, currency strategist at TreasuryONE.
The South African Reserve Bank’s next interest rate announcement is on July 31. The bank cut its repo rate by 25 basis points at its last meeting in May, with inflation below its 3%-6% target range.
The Johannesburg Stock Exchange’s Top-40 index was up about 0.4% in early trade. The benchmark 2035 government bond was little changed in early deals, with the yield at 9.935%.
(Reporting by Alexander Winning; Editing by Emelia Sithole-Matarise)
