The South African rand strengthened against the dollar on Thursday after the market focused on local manufacturing data and the much-anticipated US CPI inflation report, which could affect the Fed's interest rate outlook.。

Based on market consensus, annual core consumer price inflation is expected to slow further in December to 3.8%, compared to 4% in November。

If CPI inflation data is soft, it could bolster investor expectations of a March rate cut。According to the Chicago Mercantile Exchange's FedWatch tool, the market currently has a 66% probability of a Fed rate cut in March。

Maybank analysts said in a client note: "If there is an upward surprise in the CPI, it may boost the dollar as well as U.S. Treasury yields, but we don't think this bullish reversal will last long.。"

Meanwhile, rand traders are looking ahead to the release of South Africa's November manufacturing output data at 11: 00 GMT today.。

South African manufacturing output surges in October 2.1%, compared with a revised year-on-year decline of 4 in September..Rebound after 1%。

Market consensus shows South Africa's manufacturing output up 1 year-on-year in November.9%。

USD / ZAR down 0 as of Thursday 9: 39 GMT.33%, reported 18.6283。The pair of forex trading pairs have gone from a record 18 on January 5.Three-week high of 9564 falls back。