JOHANNESBURG - The South African rand gained on Tuesday after ‍domestic data ‍showed a pickup in the leading business cycle indicator ​in October from September, and slightly softer than expected inflation in ⁠November.

At 1409 GMT, the rand traded at 16.7050 against the dollar , ⁠about 0.3% ‌stronger than its previous close.

South Africa's leading business cycle indicator rose 0.4% month on month in October, ⁠data from the South African Reserve Bank showed. That compared with a 0.2% month-on-month decline in September.

The indicator collects data on vehicle sales, business confidence, money supply, and other ⁠factors.

November consumer inflation data ​came in at 3.5% year-on-year, bolstering expectations that the central bank will cut interest rates ‍further next year.

Economists polled by Reuters had expected annual inflation to come ​in at 3.6% for November, unchanged from October.

"The softer-than-expected South African headline inflation reading and weak core inflation will give the Reserve Bank plenty of confidence that it can meet its new, lower 3% inflation target," William Jackson, chief emerging markets economist at Capital Economics, said in a research note.

At last month's rate-setting meeting the South African Reserve Bank lowered its main lending rate ⁠by 25 basis points to 6.75%, citing ‌an improved inflation outlook.

On the Johannesburg Stock Exchange, the Top-40 index was last up 1.3%.

South Africa's benchmark 2035 government ‌bond was muted, ⁠with the yield down 1 basis point to 8.375%.