The US dollar last traded flat against a basket of currencies as traders analysed softer-than-expected US inflation readings while awaiting core Producer Price Index data for December due later in the day.
Johannesburg. The South African rand was lifted by record high gold prices in early trade on Wednesday, while global markets continued to assess key US inflation indicators which could offer more clues on the Federal Reserve's interest rate trajectory.
At 0805 GMT the rand traded at 16.3525 against the dollar , up roughly 0.2% on Tuesday's close.
The US dollar last traded flat against a basket of currencies as traders analysed softer-than-expected US inflation readings while awaiting core Producer Price Index data for December due later in the day.
"The Fed is widely expected to pause on any further interest rate hikes, despite pressure from Trump to lower rates," said Andre Cilliers, currency strategist at TreasuryONE.
He added that the rand would remain in a tight range, as it takes cues from global developments such as the unrest in Iran, concerns over the Fed's independence and a potential extension of the US trade preference programme, the African Growth and Opportunity Act.
On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was last up 0.4% in early trade.
South Africa's benchmark 2035 government bond also gained, with the yield falling 3 basis points to 8.28%.
