South African rand weakens as CPI data, rate decision awaited

JOHANNESBURG (Reuters) -South Africa's rand weakened on Monday, with investors looking ahead to inflation data and the central bank's interest rate decision due later in the week.

At 1518 GMT, the rand traded at 18.3900 against the dollar, about 0.3% weaker than its previous close.

Local focus will be on inflation figures due on Wednesday and an interest rate decision by the South African Reserve Bank on Thursday as markets look for fresh guidance.

"Investors are closely watching for the upcoming ... local CPI numbers for further market direction. We also have our local interest rate decision with no change expected," said Andre Cilliers, currency strategist at TreasuryONE.

Last Friday, S&P Global affirmed South Africa's foreign and local currency ratings, citing benefits from access to deep domestic markets, concessional funding and an actively-traded currency.

On the stock market, the Top-40 index closed about 0.5% higher.

South Africa's benchmark 2030 government bond strengthened, with the yield down 2 basis points to 10.055%.

(Reporting by Bhargav Acharya and Anait Miridzhanian;Editing by Bernadette Baum and Emelia Sithole-Matarise)