South African rand broadly steady after positive local data

JOHANNESBURG (Reuters) -South Africa's rand reversed earlier losses to hold broadly steady on Thursday after supportive local mining and manufacturing data.

At 1606 GMT, the rand traded at 18.7650 against the U.S. dollar, near its previous close of 18.7700.

The rand had fallen on Wednesday as the dollar soared after data showed U.S. inflation rose in March, dampening hopes of an interest rate cut by the Federal Reserve in June.

Statistics South Africa said the country's total mining output rose 9.9% year on year in February compared with a revised fall of 2.8% in January, while manufacturing output rose 4.1% year-on-year in February.

South African business confidence also held steady in March, stabilising at an improved level despite local economic challenges, said the South African Chamber of Commerce and Industry.

On the stock market, the Top-40 index closed down about 0.3%.

South Africa's benchmark 2030 government bond was weaker, with the yield up 13 basis points to 10.690%.

(Reporting by Nellie Peyton and Bhargav Acharya; editing by Philippa Fletcher and David Evans)