South African rand gains amid US recession fears ahead of local budget

JOHANNESBURG, March 11 (Reuters) - South Africa's rand edged higher on Tuesday against a weaker dollar amid global and domestic economic uncertainty and as investors eyed a U.S. inflation print for cues into the Federal Reserve's interest rate stance.

At 0711 GMT, the rand traded at 18.30 against the U.S. dollar ZAR=D3, about 0.3% stronger than Monday's close.

The greenback =USD traded lower against a basket of currencies and Wall Street plunged overnight on Monday after U.S. President Donald Trump declined to predict whether his tariff policies could lead to a recession, roiling investor sentiment.

Traders now await U.S. inflation data due on Wednesday for hints into the Fed's policy path amid simmering trade tensions and slowdown fears in the world's largest economy.

"All indications are that the U.S. is about to enter a recessionary environment and the U.S. exceptionalism argument that has supported the dollar for so long is gradually evaporating," ETM Analytics said.

South Africa-focussed investors will look to the local budget presentation on Wednesday after it was postponed last month over disagreements in the coalition government over increasing value added tax by two percentage points.

"Were it not for the government's inability to decide on a budget, the rand might've taken greater advantage of this environment," the note added.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index .JTOPI was little changed.

South Africa's benchmark 2030 government bond ZAR2030= was also flat, with the yield at 9.055%.