South African rand steady before domestic inflation data

Business Recorder reported that the South African rand held roughly steady in early trade on Wednesday as investors waited for July inflation figures from Statistics South Africa, due at about 0800 GMT. At 0615 GMT the currency stood at 16.2550 to the dollar, barely moved from its prior close. A Reuters poll of analysts expects annual inflation to slow to 4.5%, down from 5.0% in June.

Nedbank economists said lower transport costs, which followed a drop in fuel prices, had helped slow inflation. They also pointed to softer food prices, supported by lower global food costs, healthy domestic farm output and a fading effect of foot-and-mouth disease on meat prices. Together, the economists said, these factors offered additional relief.

Separately, June retail sales data is due around 1100 GMT. A Reuters survey of economists expects annual growth in retail sales to hold at 2.3%.