South African rand gains as US inflation weighs on dollar

South African rand gains as US inflation weighs on dollar
The South African rand gained on Tuesday against a weaker dollar after US consumer inflation slowed more than expected in June, ruling out an interest rate increase from the Federal Reserve this year.
The rand was trading at 16.3725 against the dollar by 1255 GMT, roughly up 0.6% from its previous close.
The US dollar weakened about 0.5% against a basket of currencies after US Labor Department data showed consumer prices at 3.5% in the 12 months through June, slowing from 4.2% in May.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US policy in addition to domestic data.
South Africa's mining output fell 5.4% year-on-year in May, compared with an 8% increase in April, Statistics South Africa data showed.
On the Johannesburg Stock Exchange, the Top-40 index was up about 0.2%.
South Africa's benchmark 2035 government bond was weaker, as the yield rose 7.5 basis points to 8.42%.