The South African (SA) Rand held steady in early Wednesday trading as investors awaited inflation data, which is expected to show pressure linked to the war in the Middle East.
The Rand traded at 16.1850 against the dollar, a whisker away from its previous close.
Statistics SA will publish May inflation data, with analysts polled by Reuters expecting it to accelerate to 4.7% year-on-year from April’s 4.0% reading.
Investec economist Lara Hodes expects the reading to align with economists polled by Reuters, driven mainly by steeply higher petrol and diesel prices following the global oil shock triggered by the war in the Middle East.
As a net fuel importer, SA is heavily exposed to the spike in global energy prices.
The statistics agency will also release the April retail sales, with Nedbank economists expecting growth to slow to about 2% year-on-year from 2.6% in March, pressured by higher fuel prices, renewed inflation and economic uncertainty.
SA’s benchmark 2035 government bond was flat in early deals, with the yield at 8.355%.
–Reuters–
