South African rand edges higher ahead of local data, US inflation report
JOHANNESBURG, Oct 10 (Reuters) -South Africa's rand edged higher against the dollar on Thursday, ahead of local mining and manufacturing data and a U.S. inflation report.
At 0727 GMT, the rand traded at 17.6275 against the dollar ZAR=D3, 0.13% stronger than its previous close.
The dollar index =USD was steady against a basket of currencies. It had gained earlier following the release of minutes from the Federal Reserve's September meeting on Wednesday, which confirmed the central bank would take a cautious approach to monetary easing.
The rand has lost some steam after rallying against the dollar in late September and much of its recent weakness can be attributed to the resurgence of the greenback, analysts said.
South African investor focus is now on the release of August mining and manufacturing data, while a U.S. consumer price index report looms later in the day.
"Even if (U.S.) CPI comes in lower than expected, the market seems to have largely priced in the Fed’s cautious approach, meaning that significant ZAR recovery against the USD is unlikely in the near term," said Andre Cilliers, currency strategist at TreasuryONE.
On the stock market, the Top-40 .JTOPI index was up 0.2%.
South Africa's benchmark 2030 government bond ZAR2030= was marginally weaker, with the yield up 1 basis point to 9.18%.
Reporting by Bhargav Acharya; Editing by Christopher Cushing
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