UPDATE 1-South African rand firms after big fall on Trump victory

(Updates prices as of 1426 GMT, adds analyst comment to paragraphs 4-7)

JOHANNESBURG, Nov 13 (Reuters) – South Africa’s rand staged a recovery on Wednesday after three days of heavy losses as markets fretted over what U.S. President-elect Donald Trump’s policies could mean for trade relations, while U.S. inflation rose as expected.

At 1426 GMT, the rand traded at 17.9925 against the U.S. dollar, about 0.7% stronger than its previous close.

The currency has been highly volatile, losing more than 3% against the greenback since the U.S. election on Nov. 5.

“After an ailing start to the week, the rand has clawed back some losses as markets slowly digest the impact of the incoming Trump administration,” said Warren Venketas, trading services manager at IG Group.

Markets expect Trump’s policies to bring higher economic growth in the short term but also potentially inflationary pressures. Potential policy changes include tariffs and tax cuts.

Inflation data out of the U.S. on Wednesday showed consumer prices rose as expected in October, and progress towards low inflation in the world’s biggest economy has slowed since mid-year.

“Markets were relatively muted post-announcement on USD/ZAR but could see additional movement once the U.S. comes online,” Venketas added.

On the Johannesburg stock market, the blue-chip Top-40 index was down about 0.2%.

South Africa’s benchmark 2030 government bond was stronger, with the yield down 9 basis points to 9.14%. (Reporting by Tannur Anders; Editing by Savio D’Souza and Angus MacSwan)

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