South Africa’s rand strengthened in early trading on Wednesday ahead of the release of domestic retail sales data, which analysts believe could offer early insights into the growth outlook for the country’s economy.
As of 0652 GMT, the rand was trading at 17.5950 to the U.S. dollar, marking a 0.3% gain from its previous close. Meanwhile, the U.S. dollar was up 0.1% against a basket of currencies.
Local investors are focusing on South Africa’s August retail sales data, set to be released at 1100 GMT. According to a research note from ETM Analytics, retail sales are a critical early indicator for assessing South Africa’s growth potential, given the economy’s reliance on consumption.
The note also suggested that lower interest rates, easing inflation, and potential further strength in the rand could boost retail sales going forward. South Africa’s benchmark 2030 government bond remained relatively stable in early trading.
