Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

South African rand weakens before inflation data's release

JOHANNESBURG (Reuters) - South Africa's rand weakened early on Wednesday, giving back some of the gains of from the day before, as investors took profits before a local inflation data release.

Statistics South Africa publishes September inflation figures at 0800 GMT. Price growth is expected to remain benign, supporting the carry-trade attraction of the currency.

At 0645 GMT, the rand was down 0.27% at 14.6290 per dollar, slipping from Tuesday's one-month best of 14.5700 reached during an emerging-market rally and easing fears around state power company Eskom.

The crisis-hit utility got additional 59 billion rand ($4 billion) lifeline by parliament on Tuesday, after imposing another round of nationwide blackouts last week.

Bonds were also weaker, with the yield on the benchmark government issue due in 2026 up 1 basis point to 8.215%

(Reporting by Mfuneko Toyana, editing by Larry King)

2019-10-23 09:47:03

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