JOHANNESBURG, Jan 16 (Reuters) - The South African rand slipped on Friday as traders awaited an inflation reading due next week for fresh signals on the health of Africa's most industrialised economy and clues on the central bank's rate-cutting path this year.
At 1319 GMT the rand traded at 16.4050 against the dollar, down roughly 0.4% from Thursday's close as markets cautiously waited for December consumer inflation figures.
Inflation slowed for the first time in three months in November to 3.5%, staying within the 1 percentage point tolerance band of the 3% target.
At its last meeting, South Africa's central bank cut its main lending rate by 25 basis points to 6.75% in a unanimous decision, saying there was scope to make the policy stance less restrictive, in the context of an improved inflation outlook.
The dollar last traded flat against a basket of currencies, with global investors still closely tracking U.S. President Donald Trump's statements on Iran and the Federal Reserve Chair Jerome Powell.
Like other risk-sensitive currencies, the rand often takes its cues from global drivers such as U.S. policy.
On the Johannesburg Stock Exchange, the Top-40 index was last down 0.9%.
South Africa's benchmark 2035 government bond was weaker, as the yield rose 7.5 basis points to 8.36%.
(Reporting by Sfundo Parakozov and Anathi Madubela;Editing by Mark Heinrich and Alison Williams)
