The South African rand was steady in early trade on Thursday, as investors await producer inflation data for clues on the health of Africa's most-industrialised economy. 

At 0649 GMT, the rand traded at 16.7675 against the dollar, little changed from its previous close of 16.7750.

Traders will keep tabs on the November domestic producer inflation figures due at 0930 GMT, which will provide insights into price pressures in Africa's biggest economy.

Economists polled by Reuters expect year-on-year producer inflation to fall to 2.8% from 2.9% in October, in line with Nedbank's prediction.

"PPI is forecast to ease from 2.9% to 2.8%, contained by lower fuel costs. Food prices at the producer level likely remained steady, with the impact of high meat prices offset by moderation in other categories, which benefited from favourable weather, improving logistics and stable power supply," Nedbank economists said in a note.

Inflation in South Africa has been well contained this year, allowing the South African Reserve Bank to cut its main interest rate four times. At its last policy meeting, the central bank cut interest rates by 25 basis points, citing an improved inflation outlook.

Its next policy announcement is scheduled for January 29 and analysts anticipate further rate cuts in 2026.

"A strong ZAR, subdued global oil prices, and cheap imports from China have consistently eased domestic cost pressures. With these forces still in effect, inflation is expected to remain muted into 2026. This bolsters expectations for further SARB easing next year, with the first of two more anticipated cuts likely arriving in Q1 or early Q2," said ETM Analytics in a research note.

South Africa's benchmark 2035 government bond was also steady in early deals, with the yield at 8.375%.