April 19, 2017 / 6:57 AM / 9 months ago

South Africa's rand dips as risk-weary investors sit out

JOHANNESBURG, April 19 (Reuters) - South Africa’s rand weakened against the dollar on Wednesday, weighed down by a mix of domestic and global risk aversion ahead of consumer inflation data that traders expect to gives clues on the path of interest rates.

* By 0640 GMT, the rand had slipped 0.38 percent to 13.3450 per dollar compared to a close of 13.2950 in New York.

* The currency failed to take advantage of a dollar weakened by geopolitical tensions over North Korea and Syria.

* Low volumes of trade and weak buying interest following the long weekend also cap rand’s recent gains.

* Consumer price growth slowed in February to 6.3 percent y/y, and expected to remain at that level, according to Reuters poll. Data due out at 0800 GMT.

* Recent cabinet purge that saw finance minister fired and two credit downgrades to junk still weighing, with central bank saying rand’s fall may now delay end of tightening cycle.

* Stocks set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.42 percent.

* In fixed income, the yield for the benchmark government bond due in 2026 rose 3 basis points to 8.86 percent. (Reporting by Mfuneko Toyana; Editing by Louise Ireland)

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