The South African (SA) Rand was steady this Friday, supported by higher gold prices, while traders looked ahead to consumer inflation data due next week for signals on the health of Africa’s most-industrialised economy.
At 16:20 CAT, the Rand traded at 16.8625 per Dollar , little changed from Thursday’s close, as gold held close to a seven-week high.
As a major producer of precious metals, SA often benefits from firmer bullion prices.
November consumer inflation data, due on December 17, will be in focus after SA cut its inflation target to 3% last month from a target range of 3%-6%.
A fourth-quarter survey of businesspeople, trade union officials and analysts showed on Friday that expectations for inflation in SA in 2026 have dropped sharply since the finance minister announced a lower 3% inflation target.
According to the survey, the average forecast for inflation next year is 3.8% and 3.7% in 2027, down from 4.2% in both years previously.
Headline inflation is currently 3.6% in annual terms, and economists in a Reuters poll expect it to remain unchanged.
“As we close out the week, the ZAR appears poised to end on a strong note,” ETM Analytics said in a research note as the local currency also got a boost from improved risk sentiment.
Other key releases next week include the SA Reserve Bank’s bulletin for the third quarter on Monday and producer inflation figures on Thursday.
On the Johannesburg Stock Exchange, the Top-40 index rose 1.6%.
SA’s benchmark 2035 government bond also firmed, with the yield falling 5 basis points to 8.415%.
–Reuters–
