JOHANNESBURG, Aug 19 Reuters The South African rand strengthened to a nearly 13month high on Monday, ahead of the release of domestic inflation data on Wednesday which may provide hints on the country39;s future interest rate path.

At 1519 GMT, the rand traded 0.7 firmer at 17.7375 against the dollar , a level not seen since late July 2023.

The dollar was down 0.46 against a basket of global currencies.

Investors will look to South Africa39;s July inflation figures on Wednesday for hints on the central bank39;s future interest rate path.

Investors will be watching closely at the number to see if inflation is softening enough for the central bank to begin cutting rates in September, said Rand Merchant Bank analysts in a research note.

A Reuters poll found that economists expect the central bank to cut interest rates for the first time in more than two years on Sept. 19.

This week, global markets will focus on the release of minutes from a Federal Reserve meeting and the Jackson Hole symposium of central bankers where Fed Chair Jerome Powell will give a speech.

Like other risksensitive currencies, the rand often takes cues from global drivers, such U.S. monetary policy, in addition to local factors.

On the stock market, the Top40 index closed up 1.27.

South Africa39;s benchmark 2030 government bond firmed, as the yield slipped 4.5 basis points to 9.275.

Reporting by Tannur Anders and Bhargav Acharya; Editing by Bernadette Baum and Alex Richardson

Source Reuters