South African rand slips as markets await clarity on Trump policies

Updates prices to reflect afternoon trade, adds analyst comment in paragraph 3

JOHANNESBURG, Jan 23 (Reuters) - South Africa's rand slipped on Thursday as investors continued to look for a steer on U.S. President Donald Trump's trade policies and an interest rate decision by the South African Reserve Bank next week.

At 1526 GMT, the rand traded at 18.5675 against the U.S. dollar ZAR=D3, about 0.3% lower than its previous close.

"Global markets remain cautious as traders anticipate U.S. President Donald Trump's speech at the World Economic Forum in Davos," Wichard Cilliers, head of market risk at TreasuryONE, said.

Investors have been keeping an eye on Trump's tariff plans. He has warned of possible tariffs on China, Mexico and Canada, causing some volatile currency moves.

Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. fiscal policy in addition to local factors.

Statistics agency data on Wednesday showed that South Africa's annual consumer inflation rose to 3% in December, the lower limit of its target range, up from 2.9% in November.

A Reuters poll on Thursday forecast that the central bank will trim the main lending rate on Jan. 30 by a quarter of a percentage point to 7.5% and repeat that in March.

On the stock market, the Top-40 .JTOPI index closed about 0.8% lower.

South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 5 basis points at 9.055%.