South African rand steady before producer inflation, budget balance data

The South African rand held steady in early trade on Thursday as investors awaited June producer inflation and budget balance data for fresh clues on the economy. At 0709 GMT, the currency traded at 16.6575 per dollar, barely off its prior close. Statistics South Africa is set to release the June producer inflation figures at 0930 GMT, with Reuters analysts forecasting an increase to 7.9% year on year. Producer inflation accelerated to 7.8% in May from 4.8% in April, driven largely by higher petroleum and chemical product costs. ETM Analytics said another strong print would signal ongoing pipeline pressure and raise the risk of fuel shock spreading into core consumer prices. Later, the National Treasury will publish budget balance numbers. In global terms, the rand remains sensitive to risk sentiment and U.S. monetary policy, after a divided Fed left rates unchanged Wednesday.