The South African rand was muted in early trade on Wednesday, as traders awaited inflation data, retail sales data and a business confidence index that will shed light on the country’s economic outlook.
At 0532 GMT the rand traded at 16.0125 against the dollar , little changed from its previous close of 16.0175.
Domestically-focused traders are waiting for January consumer inflation (ZACPI=ECI), opens new tab data due at 0800 GMT and November retail sales (ZARET=ECI), opens new tab at 1100 GMT.
Economists polled by Reuters expect annual inflation will come in at 3.4% for January, down from 3.6%.
Investec economist Lara Hodes said inflation is projected to have lifted by a modest 0.2% m/m in January, translating to 3.5% y/y.
“Fuel prices decreased in January, with the petrol price down -66c/litre. Moreover, international food prices, which affect domestic prices through export/import parity decreased by -2.1% m/m in January,” Hodes said in a research note.
Nedbank economists forecast CPI to remain unchanged at 3.6% in January citing upward pressure from food inflation, driven by elevated meat prices reflecting the continued impact of foot-and-mouth disease.
Then, for insight on private sector sentiment, the South African Chamber of Commerce and Industry will release its business confidence index (ZABCI=ECI), opens new tab at 0930 GMT.
South Africa’s benchmark 2035 government bond was also flat in early deals, with the yield at 7.195%
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