South African rand slips ahead of economic data test

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South African rand slips ahead of economic data test

10:15 CAT | 15 Feb 2023

Image: Reuters/Thomas White

The South African rand slipped against a stronger dollar early on Wednesday ahead of the release of local inflation, business confidence and retail sales figures later in the day.

At 0600 GMT, the rand ZAR=D3 traded at 17.9800 against the dollar, more than 0.3% weaker than its previous close.

The dollar was up about 0.2% against a basket of global currencies =USD.

Statistics South Africa will publish January consumer inflation figures ZACPIY=ECI at 0800 GMT and December retail sales ZARET=ECI at 1100 GMT.

The South African Chamber of Commerce and Industry will publish its January business confidence index ZABCI=ECI at 0930 GMT.

All three releases could influence rand trading if they bring in surprises, after the local currency has mainly tracked global factors so far this week.

Economists polled by Reuters predict inflation to ease to 6.9% in annual terms in January from 7.2% in the prior month, while they expect retail sales to contract 0.1% in December after a 0.4% growth in November.

The South African government’s benchmark 2030 bond ZAR2030= was weaker in early deals, with the yield up 6 basis points at 9.900%.

Source: Reuters