JOHANNESBURG – South Africa’s rand traded flat on Thursday, with its recent rally to a one-month best running out of steam ahead of producer inflation and trade data releases set to provide investors with signs of the likely direction of lending rates.
At 0650 GMT the rand was 0.07 percent firmer at 13.6400 per dollar, not far off the 13.5650 reached on Tuesday as traders closed long-dollar positions in anticipation of a reform-positive outcome to the ANC’s leadership contest.
The rand has rallied since Monday after S&P Global Ratings downgraded Pretoria’s local currency debt to sub-investment grade on Friday and but Moody’s opted only to put the rating on review for a downgrade, easing pressure on the currency.
Stats South Africa publishes October producer inflation figures and trade balance data from the revenue service is due at 1200 GMT.
Bonds were weaker, with the yield on the benchmark paper due in 2026 up 3 basis points to 9.32 percent.
The stock markets opened lower, with the bluechip Top40 index down 0.85 percent at 53,503 points.(Reuters)
