South Africa rand regains momentum ahead of inflation data
By 1400 GMT the rand had gained 0.52 to 11.6075 per dollar, the local unit gaining momentum after sluggish trade in the wake of lowered liquidity after a U.S. holiday on Monday.
"We're generally seeing dollar weakness across the board, so I'd put the rand's gains down to profit-taking (on the dollar) more than anything else," said Ian Martin, a trader with Rand Merchant Bank.
Low oil prices, which rose to \\$62 per barrel on Tuesday near a 2015 high but still a long-way from \\$115 peaks of June 2014, are expected to keep local interest rates in check.
A Reuters poll of 35 economists in the past week showed lending rates are expected to remain on hold at 5.75 percent as inflation continues to trend well below the central bank's 6 percent upper limit.
South Africa's statistics agency releases January inflation figures on Wednesday, followed by retail sales data later in the session.
"I don't see any of the numbers coming out in the next two months moving the currency much or forcing the central bank to change its view point," Martin added. "The budget speech next week seems to be what everyone is waiting for."
Yields on government bonds edged up, the highly-traded instrument due in 2026 adding 4.5 basis points to 7.615 percent.
Earlier, European Union finance ministers issued veiled threats to press Greece to stay in an international bailout, while Greece's Finance Minister rejected the notion that accepting terms of the bailout was the only option, stoking market fears of Greek walkout.
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