JOHANNESBURG: South Africa’s rand strengthened to a nearly 11-month high early on Wednesday, ahead of local inflation figures and President Cyril Ramaphosa’s inauguration for a second term.
At 0719 GMT, the rand traded at 17.9575 against the dollar, 0.57% stronger than its previous close.
It earlier hit 17.9475 per dollar, a level last seen in late July 2023.
Investors will turn their focus towards Statistics South Africa at 0800 GMT for the release of monthly inflation figures. Economists polled by Reuters predict May year-on-year inflation to come in at 5.2%.
South African rand little changed in early trade
Attention will also be on the capital Pretoria, where Ramaphosa is set to take oath as South Africa’s president after last month’s election in which the African National Congress (ANC) lost its majority for the first time since the end of apartheid 30 years ago.
Five political parties have joined the ANC in a government of national unity including the pro-business Democratic Alliance, which is favoured by markets.
On the stock market, the Top-40 index was up 1.3% while the broader all-share index traded 1.2% higher in early trade.
South Africa’s benchmark 2030 government bond was stronger in early deals, with the yield down 15 basis points to 9.705%.
American Dollar Exchange Rate