Market News

JOHANNESBURG, Oct 22 (Reuters) – The South African rand was flat in early trade on Wednesday, as investors awaited local inflation data for clues about price pressures in Africa’s biggest economy.

At 0555 GMT the rand traded at 17.38 against the dollar, a whisker away from its previous close of 17.3725.

The benchmark 2035 government bond was also little changed in early deals, with the yield still at 8.91%.

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The September inflation print is due out at 0800 GMT, with economists polled by Reuters predicting a slight acceleration in the year-on-year rate to 3.5% from 3.3% in August.

Nedbank economists said the expected pickup was a reflection of “a slower drop in fuel costs and elevated food prices.”

South Africa’s central bank has been effectively targeting 3% inflation since July, despite the finance minister not yet formally changing its 3%-6% target range.

The South African Reserve Bank’s clear preference for a lower target has boosted the rand and brought down government borrowing costs this year.