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South Africa‘s rand remained largely unchanged against the US dollar in early trading on Thursday as investors awaited the release of the country’s latest producer inflation data.
According to Reuters, the rand traded at 16.5775 per dollar, indicating a little change from its previous close.
Market sentiment was influenced by global factors, including a stronger US dollar and declining oil prices. The dollar remained close to a 13-month high against a basket of major currencies as investors continued to bet on the strength of the U.S. economy and looked ahead to key inflation figures.
Meanwhile, oil prices extended their recent decline, falling to levels last seen before the outbreak of the conflict between Iran and Israel, easing some inflation concerns in global markets.
Investors are now focused on South Africa’s producer price inflation data for May, which is scheduled for release later on Thursday.
Producer inflation measures changes in the prices businesses receive for goods and services before they reach consumers and is often seen as an indicator of future consumer price trends.
Economists surveyed by Reuters expect producer inflation to rise by 6.7 per cent year-on-year.
Analysts at ETM Analytics said producer inflation is likely to increase but noted that the impact could be tempered by falling oil prices, which may help reduce cost pressures in parts of the economy.
South Africa’s benchmark 2035 government bond also showed modest gains in early trading. Its yield fell by two basis points to 8.265 per cent, indicating slightly stronger investor demand.
