JOHANNESBURG, Feb 26 (Reuters) - South Africa's rand was stable on Wednesday as markets awaited U.S. gross domestic product data and an inflation reading later this week.

At 1602 GMT, the rand traded at 18.39 against the U.S. dollar , unchanged from the previous session's close.

The dollar gained about 0.1% against a basket of currencies.

Domestic data on Wednesday showed South African consumer inflation edged up in January in the first release since the statistics agency updated its consumer price basket, but the headline rate remained near the bottom of the central bank's target range.

Inflation rose to 3.2% year-on-year in January from 3.0% in December (ZACPIY=ECI) , opens new tab, within the South African Reserve Bank's target range of 3% to 6%.

"The South African rand remained subdued despite a rise in inflation, aligning with the (South African) Reserve Bank's recent caution on inflationary risks," said Zain Vawda, market analyst at MarketPulse by OANDA.

Markets will look to second-quarter gross domestic product estimates for the U.S. on Thursday and a personal consumption expenditures reading, the Federal Reserve's preferred measure of inflation, on Friday.

Vawda said global factors continue to outweigh local data and the upcoming U.S. data could spark "notable volatility" for the rand and other emerging market currencies.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed about 0.7% higher.

South Africa's benchmark 2030 government bond was stronger, with the yield down 4 basis points to 9.025%.

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https://www.reuters.com/markets/currencies/south-african-rand-weakens-investors-await-local-inflation-data-2025-02-26/