South African rand flat with market focus on U.S. inflation report

Kitco Media
By Reuters
Published:
Updated:
Reuters
JOHANNESBURG, Feb 14 (Reuters) - The South African rand was flat in early trade on Tuesday, as investor caution prevailed ahead of a closely watched U.S. inflation report due later in the day. At 0600 GMT, the rand traded at 17.8450 against the dollar, not far from its previous close of 17.8375. Markets are looking to the U.S. consumer price index (CPI) for further clues about the Federal Reserve's interest rate path, a major driver of global asset prices. U.S. consumer prices are expected to rise 0.5% in January , according to a Reuters poll, after a revised 0.1% increase in the prior month. South African inflation and retail sales figures will be published on Wednesday. Economists polled by Reuters expect annual inflation to fall to 6.9% in January from 7.2% in December, and retail sales to contract 0.1% in December from growth of 0.4% in November. South Africa's benchmark 2030 bond was flat early on Tuesday, with the yield at 9.85%.


Later on Tuesday, the government will auction up to 3.9 billion rand ($218.5 million) of 2030, 2032 and 2035 bonds. (Reporting by Alexander Winning)

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