UPDATE 1-South African rand firms after producer inflation data, central bank review

(Updates prices to reflect afternoon trade, SARB review in paragraph 4)

JOHANNESBURG, Nov 28 (Reuters) – The South African rand strengthened on Thursday, after the release of October producer inflation data and the central bank’s November Financial Stability Review.

At 1507 GMT the rand was trading at 18.115 to the dollar , about 0.5% stronger than its previous close.

South African producer inflation was at minus 0.7% year-on-year in October, down from 1.0% in September, statistics agency data showed.

The South African Reserve Bank (SARB) said in its November Financial Stability Review that the outlook for financial stability had improved as a result of successful elections, a reduction in power cuts and an expectation of lower interest rates.

Domestic investor focus will turn on Friday towards month-end economic data releases that include money supply, trade and budget balance.

On the stock market, the Top-40 index closed about 0.4% lower.

South Africa’s benchmark 2030 government bond was stronger, with the yield down 6 basis points at 8.97%. (Reporting by Tannur Anders and Bhargav Acharya Editing by David Goodman and Kevin Liffey)

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