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SA rand recovers

The South African rand recouped some of the previous day’s losses early on Wednesday, before the release of inflation data which is expected to show a significant slowdown in price rises for consumer goods.

At 0711 GMT, the rand traded at 13.9325 versus the dollar, 0.2 percent stronger than its previous close.

Among factors supporting the rand, China – a major South African trading partner and the world’s second-largest economy – said it would step up fiscal spending to support growth.

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

Inflation is expected to slow to 4.5 percent year on year from 5.2 percent in the previous month, economists polled by Reuters predicted.

South Africa’s central bank referred to an improved near-term inflation outlook at its latest monetary policy meeting this month, when it kept its repo rate unchanged. The bank tries to keep inflation close to the midpoint of its 3 percent to 6 percent target range.

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

Source : The Herald

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