JOHANNESBURG, July 25 Reuters The South African rand was weaker in early trade on Thursday, ahead of U.S. economic data readings that could give hints on the future interest rate path of the world39;s biggest economy.
At 0631 GMT, the rand traded at 18.42 against the dollar , about 0.2 weaker than its previous close.
Markets await a U.S. gross domestic product reading on Thursday and personal consumption expenditure data the Federal Reserve39;s favoured measure of inflation on Friday. These readings could give hints on the country39;s the future interest rate path.
Ahead of this afternoon39;s much anticipated U.S. data… markets have seen risk off sentiment increase and thus EM emerging market currencies remain on the back foot, said Andre Cilliers, currency strategist at TreasuryONE.
The rand… could possibly test the R18.50 mark in the current market conditions, with headwinds for commodity currencies also flaring up, Cilliers added.
Like other risksensitive currencies, the rand often takes cues from global factors in addition to domestic drivers.
Locally, investors will turn their attention to South Africa39;s producer inflation figures for June, expected around 0930 GMT.
On Wednesday, Statistics South Africa data showed headline consumer inflation eased to 5.1 yearonyear in June from 5.2 in May.
South Africa39;s benchmark 2030 government bond was slightly stronger in early deals, as the yield slipped 0.2 basis point to 9.5.
Reporting by Tannur Anders;…