JOHANNESBURG, Jan 14 Reuters South Africa39;s rand firmed early on Tuesday against a stronger dollar, as markets looked to U.S. inflation data due on Wednesday for clues on the Federal Reserve39;s interest rate path.

At 0546 GMT, the rand traded at 18.9850 against the U.S. dollar , about 0.2 stronger than its previous close. The greenback last traded about 0.1 stronger against a basket of currencies.

The rand hit a ninemonth low on Monday before staging a recovery, against a stronger dollar amid an uncertain outlook for further interest rate cuts by the Fed.

There is not much that can be read into the rand39;s overnight recovery back below the 19.00 handle. Although it is welcome, the U.S. inflation data… could change all that again, ETM Analytics said in a note.

Recent U.S. data underscored the strength of the economy, leading traders to scale back bets for 2025 rate cuts.

South Africa39;s benchmark 2030 government bond was little changed in early deals, with the yield at 9.315.

Reporting by Tannur Anders; Editing by Subhranshu Sahu

Source Reuters