The South African rand was subdued in early trade on Friday, as markets awaited a key US inflation report and the release of some domestic economic indicators which could offer clues on the health of Africa's most industrialised economy.

At 0529 GMT the rand traded at 17.7225 against the dollar, about 0.2% weaker than Thursday's close.

The dollar last traded flat against a basket of currencies as cautious traders priced in a September US interest rate cut, while worries about the threats to the Federal Reserve's independence linger.

Investors will keep a keen eye on the Personal Consumption Expenditures Price Index, the Fed's preferred inflation measure, due later in the day, for further cues on the central bank's interest rate trajectory.

South African data releases on Friday include money supply and private sector credit data, as well as trade balance and budget balance.

South Africa's benchmark 2035 government bond was slightly firmer in early deals, with the yield falling one basis point to 9.595%.