South African rand steadies ahead of producer inflation data

JOHANNESBURG: The South African rand steadied in early trade on Thursday as ​traders looked to local producer inflation ‌data due later in the day, while a stronger dollar and falling oil prices shaped global ​markets. At 0630 GMT, the rand traded ​at 16. 5775 against the dollar, little ⁠changed from its previous close. The dollar index ​held near a 13-month high against a basket ​of currencies as traders bet on a strong U. S. economy propping up short-term interest rates and ​waited on key inflation data, while oil ​prices extended their decline to near levels last seen ‌before ⁠the start of the Iran war. Statistics South Africa will publish May producer inflation numbers at 0930 GMT, with analysts polled by ​Reuters expecting producer ​inflation ⁠at 6. 7% year on year. ETM Analytics said in a research note ​that producer price inflation would ​probably ⁠jump but might be overshadowed by falling oil prices. South Africa’s benchmark 2035 government bond ⁠was ​slightly firmer in early ​deals, as the yield fell 2 basis points to 8. 265%.

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