Market News
South African rand lifted by gold as traders brace for inflation data next week - REUTERS
BY Sfundo Parakozov
JOHANNESBURG, Dec 12 (Reuters) – The South African rand gained in early trade on Friday, supported by higher gold prices, while traders looked ahead to consumer inflation data due next week for signals on the health of Africa’s most-industrialised economy.
At 0820 GMT, the rand traded at 16.84 per dollar, up 0.2% from Thursday’s close and hovering near its strongest level this year, as gold held close to a seven-week high.
As a major producer of precious metals, South Africa often benefits from firmer bullion prices.
November consumer inflation data, due on December 17, will be in focus after South Africa cut its inflation target to 3% last month.
Headline inflation is currently 3.6% in annual terms, and economists in a Reuters poll expect it to remain unchanged.
“As we close out the week, the ZAR appears poised to end on a strong note,” ETM Analytics said in a research note as the local currency also got a boost from improved risk sentiment.
Other key releases next week include the South African Reserve Bank’s bulletin for the third quarter on Monday and producer inflation figures on Thursday.
On the Johannesburg Stock Exchange, the Top-40 index rose 1.8% in early trade.
South Africa’s benchmark 2035 government bond also strengthened, with the yield falling 3.5 basis points to 8.385%.
