South African rand firms to near 13-month high, focus on local inflation
Updates prices to reflect afternoon trade
JOHANNESBURG, Aug 19 (Reuters) -The South African rand strengthened to a nearly 13-month high on Monday, ahead of the release of domestic inflation data on Wednesday which may provide hints on the country's future interest rate path.
At 1519 GMT, the rand traded 0.7% firmer at 17.7375 against the dollar ZAR=D3, a level not seen since late July 2023.
The dollar =USD was down 0.46% against a basket of global currencies.
Investors will look to South Africa's July inflation figures on Wednesday for hints on the central bank's future interest rate path.
"Investors will be watching closely at the number to see if inflation is softening enough for the central bank to begin cutting rates in September," said Rand Merchant Bank analysts in a research note.
A Reuters poll found that economists expect the central bank to cut interest rates for the first time in more than two years on Sept. 19.
This week, global markets will focus on the release of minutes from a Federal Reserve meeting and the Jackson Hole symposium of central bankers where Fed Chair Jerome Powell will give a speech.
Like other risk-sensitive currencies, the rand often takes cues from global drivers, such U.S. monetary policy, in addition to local factors.
On the stock market, the Top-40 .JTOPI index closed up 1.27%.
South Africa's benchmark 2030 government bond ZAR2030= firmed, as the yield slipped 4.5 basis points to 9.275%.
Reporting by Tannur Anders and Bhargav Acharya; Editing by Bernadette Baum and Alex Richardson
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