South African rand firms as August retail sales data on tap

JOHANNESBURG, Oct 16 (Reuters) – South Africa’s rand gained in early trade on Wednesday, ahead of domestic retail sales data that could provide some early hints on the growth prospects of Africa’s most industrialised economy, analysts said.

At 0652 GMT, the rand traded at 17.5950 against the U.S. dollar, about 0.3% firmer than its previous close.

The dollar last traded about 0.1% stronger against a basket of currencies.

Local investors will turn to South Africa’s August retail sales data at 1100 GMT.

“Given the economy’s dependence on consumption, retail sales are an important ‘early indicator’ of South Africa’s growth prospects,” said ETM Analytics in a research note.

Lower interest rates, slow inflation and potential continued strength in the rand could help retail sales looking forward, the note added.

South Africa’s benchmark 2030 government bond was little changed in early deals. (Reporting by Tannur Anders; Editing by Sumana Nandy)

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