The South African rand extended gains against the dollar on Thursday, supported by subdued local consumer inflation and upbeat retail sales data the day before.

At 0742 GMT, the rand traded at 17.66 against the US dollar, about 0.3% stronger than its previous close.

November's consumer inflation reading was lower than expected, staying below the central bank's target range, which could see it cut interest rates further, supporting economic growth. 

October retail sales were much stronger than forecast.

At 0930 GMT on Thursday, Statistics South Africa will publish the November Producer Price Index (PPI), giving more evidence about the extent to which price pressures are contained.

Economists polled by Reuters expect producer inflation to come in at 0.1% year on year from -0.7% recorded one month earlier.

"It (the rand) looks set to end the week on a firmer footing, with only some focus on the PPI data scheduled for today ... as investors look for signs that the softer inflation trajectory will extend through the foreseeable future," said ETM Analytics in a research note.

Third-quarter formal-sector employment numbers are also scheduled to be released at 0930 GMT.

On the Johannesburg Stock Exchange, the Top-40 index was up about 0.7% in early trade.

South Africa's benchmark 2030 government bond was stronger in early deals, with the yield down 2 basis points to 8.91%.