South African rand extends losses as dollar firms

South Africa's rand weakened early on Wednesday against a stronger dollar, continuing its decline since the start of the week as traders awaited U.S. inflation data due on Thursday.

At 0652 GMT, the rand traded at 18.7425 against the dollar , about 0.2% weaker than its previous close.

The dollar was last up around 0.13% against a basket of global currencies.

Investors' focus this week is the December U.S. inflation reading, which is expected to provide some clarity on the Federal Reserve's monetary policy outlook.

In the absence of local economic data, the rand often takes its cues from global factors such as U.S. monetary policy.

The South African currency has had a lacklustre start to the year, after losing more than 7% against the dollar in 2023.

South Africa's benchmark 2030 government bond was weaker in early deals, with the yield up 3 basis points to 9.750%.

Article and image originally appeared on Reuters