South African rand firms after local retail sales, US inflation data

South Africa's rand held onto its gains on Wednesday, after encouraging domestic retail sales figures and a U.S. inflation report.

At 1400 GMT, the rand traded at 18.3525 against the dollar USDZAR, 0.22% stronger than its previous close.

The dollar index DXY was last trading down 0.25% against a basket of currencies.

U.S. consumer prices increased less than expected in April, boosting expectations that the Federal Reserve may cut interest rates in September.

South African retail sales rose 2.3% year on year in March after decreasing by a revised 0.7% in February, Statistics South Africa figures showed.

On the stock market, the Top-40 index SA40 was trading 0.8% higher while the broader all-share JSE:J203 index was up 0.7%.

South Africa's benchmark 2030 government bond (ZAR2030=) was stronger, with the yield down 10 basis points at 10.415%.