The South African rand weakened on Friday as investors turned their attention to next week's inflation data and monetary policy meeting, where the interest rate decision is expected to be a close call.

The rand traded at 16.57 against the dollar at 1306 GMT, roughly down 1% from its previous close.

The currency has remained under pressure for most of the week as tensions in the Middle East weighed on risk sentiment, pushing the currency to its weakest level this month.

Traders are now focused on June consumer inflation data due on Wednesday for fresh clues on the South African Reserve Bank's (SARB) plans on interest rates.

Headline inflation rose less than expected to 4.5% year on year in May, from 4.0% in April. Analysts had forecast 4.7% for the May figure.

Johann Els, chief economist at PSG Financial Services, expects inflation to edge up to 4.7% in June and for the SARB to leave its main lending rate unchanged at next week's meeting.

However, Els said the renewed conflict in the Middle East and resulting rise in oil prices had complicated the policy outlook, keeping an increase of 25 basis points on the table.

The central bank raised its main lending rate for the first time in three years at its previous meeting.

On the Johannesburg Stock Exchange, the Top-40 index was down 1.2%.

The yield on South Africa's benchmark 2035 government bond dropped by 9 basis points to 8.54%.