South Africa’s rand dipped early on Wednesday, erasing some of the previous day’s gains before consumer price index (CPI) data.
At 0720 GMT, the rand ZAR=D3 traded at 15.2375 versus the dollar, roughly 0.3% weaker than its previous close.
The rand had risen on Tuesday as appetite for riskier assets grew after U.S. President Donald Trump accepted the start of a transition to a Joe Biden presidency. ZACPIY=ECI data is due around 0800 GMT and is expected to show a slight pickup in consumer inflation in October to 3.1% in annual terms, from 3.0% in the previous month.
Those modest readings are comfortable for the central bank, which has a target range of between 3% and 6%.
The central bank kept its main lending rate on hold last week at 3.5% ZAREPO=ECI , and one of its deputy governors said this week that a full economic recovery from the effects of COVID-19 was likely to be “slow and difficult”. bonds were little changed in early deals, with the yield on the 2030 instrument ZAR2030= at 8.855%.