Money SA economy
The rand was little changed in early trade on Wednesday. Data released on Tuesday was perceived to be rand positive, particularly the better than expected current account deficit.
At 8.19am the rand was bid at R7.34 to the dollar from R7.32 at its previous close. It was bid at R9.85 to the euro and R10.98 to the pound.
The euro was bid at $1.3416 from $1.3468 previously.
RMB analysts said in their morning report that data contained in yesterday's SARB Quarterly Bulletin was certainly rand positive - showing a faster than expected economic recovery, an improved export performance, a smaller current account deficit with ample financing and no activity by the SARB to limit rand gains.
The consumer inflation index - the measure used by the South African Reserve Bank for its inflation target - is expected to have decreased to 5.7% year-on-year (y/y) in February from 6.2% in January, according to a survey of 11 leading economists by I-Net Bridge.
Forecasts among the economists ranged from 5.5% to 5.9%.
The lower reading could prompt the central bank to lower interest rates on Thursday, according to some analysts. The other factor is that the strong rand has made importing goods cheaper.
Dow Jones Newswires reported the euro is lower Wednesday, but improving prospects for a European Union deal on Greece's debt dilemma could cause some short-covering later.
