South Africa’s rand steady in early trade after rally

A street money changer counts South African Rands in Harare, Zimbabwe, May 5, 2016. REUTERS/Philimon Bulawayo

JOHANNESBURG (Reuters) – South Africa’s was rand steady in early trade on Friday after rising as much as 2 percent against the dollar in the previous session, a rally spurred by higher commodity prices and lower-than-expected U.S. inflation data.

At 0625 GMT, the rand was fetching 12.31/dlr, unchanged from its New York close.

Momentum indicators tracked by analysts suggest the currency may be rangebound and struggle for direction, with no major domestic indicators due for release on Friday.

NKC African Economics pegs the currency range for the day at 12.20 to 12.45/dlr.

Disappointing local mining and manufacturing data in the previous session could cap gains as they suggest slowing economic growth.

In fixed income, the yield for the benchmark government bond due in 2026 unchanged at 8.355 percent.

Reporting by Ed Stoddard; editing by John Stonestreet

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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