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Rand recovers before inflation data

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The rand recouped some of the previous day’s losses as soon as possible Wednesday, until the release of inflation data that’s expected to show a major slowdown in price rises for consumer goods.

At 0711 GMT, the rand traded at 13.93 as opposed to the dollar, 0.2% stronger than its previous close.

Among factors supporting the rand, China – a leading South African trading partner and the world’s second-largest economy – said hello would intensify fiscal spending to guide growth.

Statistics Africa will release December consumer inflation data around 0800 GMT.

Inflation predicted to slow to 4.5% year-on-year from 5.2% in the last month, economists polled by Reuters predicted.

South Africa’s central bank called a better near-term inflation outlook at its latest monetary policy meeting this month, in the event it kept its repo rate unchanged. The lender efforts to keep inflation close to the midpoint of that 3% to 6% target range.

Read: Kganyago says mid-point target provides shocks

Stocks opened slightly weaker, together with the Johannesburg Stock Exchange’s All-share index down 0.15% at 53 999 points. Government bonds also dipped, because yield about the benchmark 2026 instrument rose 1 basis point to 8.870%.

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