South African rand firms ahead of inflation data, rate decision

JOHANNESBURG (Reuters) -The South African rand firmed on Tuesday as markets await local inflation figures and a central bank interest rate decision in the days ahead.

At 1516 GMT, the rand traded at 18.9300 against the dollar, 0.41% stronger than its previous close.

"Idling for most of the day the rand has managed to find some marginal strength later on in the day," said Shaun Murison, senior market analyst at IG.

The rand is likely to take its cues from August inflation data to be released on Wednesday and the South African Reserve Bank's interest rate decision on Thursday.

Most analysts polled by Reuters expect the bank to leave its main interest rate unchanged at 8.25%.

Investors will also be looking at the U.S. Federal Reserve's interest rate decision on Wednesday.

South Africa's benchmark 2030 government bond was stronger in afternoon deals, with the yield down 2.5 basis points to 10.485%.

(Reporting by Tannur Anders and Anait MiridzhanianEditing by Rashmi Aich and Mark Potter)