Rand Strengthens Ahead of Inflation Data Release

The South African rand began the week on a positive note, gaining strength against the U.S. dollar in early trade on Monday.

This came as investors awaited inflation data due to be released by Statistics South Africa on Wednesday, which could provide valuable insight into the health of the country's largest economy.

The rand traded at 16.1425 against the dollar, up roughly 0.4% from its previous close.

Analysts polled by Reuters expect a cooler reading of 4.5% in July inflation data, following June's headline inflation rate of 5.0%, which was driven mainly by transport costs.