JOHANNESBURG (Reuters) -The South African rand advanced in early trade on Wednesday before the release of local inflation data.
At 0640 GMT, the rand traded at 18.5250 against the dollar, about 0.4% stronger than Tuesday’s close.
Trade in the rand has been highly volatile for weeks as financial markets have grappled with rifts in the ruling coalition over the national budget and uncertainty over U.S. President Donald Trump’s tariff plans.
The statistics agency will release March inflation figures at 0800 GMT.
Economists polled by Reuters predict annual inflation slowed from 3.2% in February to 2.9% last month, staying near the bottom of the central bank’s target range.
Despite domestic inflation being well under control, the South African Reserve Bank left its main lending rate unchanged last month after three consecutive rate cuts, citing risks from Trump’s trade war and the budget fallout.
It stuck to that cautious tone in a biannual review of its monetary policy last week, saying its confidence about the medium-term outlook for inflation had reduced significantly and the scope for policy easing had narrowed.
South Africa’s benchmark 2030 government bond was slightly stronger in early deals, as the yield fell 5 basis points to 9.115%.
(Reporting by Sfundo Parakozov;Editing by Alexander Winning and Muralikumar Anantharaman)
