A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images

JOHANNESBURG, Dec 11 (Reuters) – South Africa’s rand weakened early on Wednesday ahead of domestic and U.S. inflation readings which could give clues on the future interest rate path of both countries.

At 0711 GMT, the rand traded at 17.85 against the U.S. dollar, about 0.2% softer than its previous close.

Markets will look to November consumer inflation data out of the world’s biggest economy on Wednesday to challenge or cement bets of an interest rate cut by the Federal Reserve next week. Markets expect a 25-basis-point cut on Dec. 18.

Likewise, South Africa-focussed investors will at 0800 GMT look to the November inflation print for hints on the policy path of its central bank when it meets in January.

Economists polled by Reuters expect South Africa’s inflation to accelerate to 3.1% year on year in November, up from 2.8% recorded in October.

At 1100 GMT, focus will be on South Africa’s October retail sales figures.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down about 0.5% in early trade.

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South Africa’s benchmark 2030 government bond was flat in early deals, with the yield at 8.97%.

(Reporting by Tannur Anders)