South African rand gains ahead of cenbank's rate decision

The South African rand was stronger in early trade on Thursday ahead of a key interest rate decision by the central bank amid high inflation.

At 0607 GMT, the rand traded at 18.7850 against the dollar , over 0.6% stronger than its previous close.

The dollar last traded around 0.3% weaker against a basket of global currencies.

Headline consumer inflation (ZACPIY=ECI) rose to 5.9% year-on-year in October from 5.4% in September, data from Statistics South Africa showed on Wednesday, nearing the top of the central bank's target range of 3% to 6%.

Investors will focus on the South African Reserve Bank's (SARB) main interest rate decision and its Monetary Policy Committee's tone on the future rate path (ZAREPO=ECI), (ZAPRIM=ECI) later in the day.

Analysts polled by Reuters predict interest rate to be maintained at 8.25%, its highest since 2009.

"Let's see the tone of the statement, the forecasts and vote split. Presumably, SARB will only pivot after the Fed," said Rand Merchant Bank analysts in a morning briefing.

South Africa's benchmark 2030 government bond was flat in early deals to 10.140%.

Article and image from Reuters