JOHANNESBURG (Reuters) – South Africa’s rand was little changed on Thursday, a day after a key U.S. inflation report boosted hopes of a less restrictive Federal Reserve policy this year.
By 0725 GMT, the rand traded at 18.7625 against the dollar, near its previous close of 18.7575.
U.S. core inflation slowed last month, while headline consumer prices showed no major surprises, boosting market bets that the Fed would reduce rates twice by the end of 2025, with the first reduction expected in June.
However, markets have a wary eye on U.S. President-elect Donald Trump’s inauguration on Monday, watching for a slew of executive orders, especially on tariffs, that are likely to roil asset prices and the dollar.
There are no major domestic economic releases due in South Africa this week.
On the Johannesburg stock market, the Top-40 index was up about 0.6%.
South Africa’s benchmark 2030 government bond was marginally stronger, with the yield down 1 basis point to 9.15%.
(Reporting by Bhargav Acharya; Editing by Clarence Fernandez)
