South African rand softens ahead of domestic mining data

JOHANNESBURG, Nov 12 (Reuters) - The South African rand softened in early trade on Thursday as a stronger dollar and growing expectations of a further Federal Reserve rate hike weighed on risk-sensitive currencies, while investors awaited domestic mining production data.

• At 0529 GMT, the rand traded at 16.62 against the dollar , 0.2% down than its previous close

• Statistics South Africa is due to publish September mining production data ZAMNG=ECI at 0930 GMT, with economists expecting another contraction after output fell 12.7% year on year in August.

• "We expect the weakness to persist into September as high input costs, compounded by steep fuel prices, and structural constraints continue to weigh on both sectors," Nedbank economists said in a note.

• The dollar climbed to a 19-month high against major peers, supported by growing expectations of a US Federal Reserve rate hike

• Traders ramped up bets on further Fed tightening after stronger-than-expected October inflation data and a series of hawkish remarks from US central bank officials, who expressed concern over stubborn inflation and left open the possibility of a larger 50-basis-point increase

• Like other risk-sensitive currencies, the rand often takes its cues from global factors, particularly US monetary policy, alongside domestic economic data

• South Africa's benchmark 2035 government bond was steady in early deals, with the yield at 8.465%