South Africa’s rand firmed marginally early on Thursday, ahead of a slew of local economic data releases including producer inflation and a key US inflation reading.
The rand traded at R19.24 against the US dollar.
South African investors will turn their focus towards January producer inflation, trade and budget balance figures due later in the day for clues on the health of the local economy.
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Central bank data earlier showed South Africa’s January M3 money supply growth was at 6.58% year-on-year and credit growth at 3.16% year-on-year.
M3 is a measure of money supply released by the South African Reserve Bank, which includes all currency in circulation, bank deposits and debt securities, among others.
Investors will also be closely watching the release of US personal consumer expenditures (PCE) price index – the Federal Reserve’s preferred inflation gauge – for fresh directions on the Fed’s interest rate outlook.
“Markets continue to trade on a softer foot… as (they) wait to dive into the PCE data for further clues in the ongoing tussle over when the FOMC starts cutting rates,” Andre Cilliers, currency strategist at TreasuryONE, said.
South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 2 basis points to 10.170%.