South African Rand Strengthens After Federal Reserve Rate Decision

South Africa’s rand strengthened in early trade on Thursday, as the dollar hovered around seven-week lows after the U.S. Federal Reserve signalled that its rate hike campaign could be nearing the end.

The Fed on Wednesday raised interest rates by a widely expected 25 basis points (bps) and indicated it might pause further increases after the recent collapse of two U.S. banks.

At 06:30 GMT, the rand traded at 18.1475 against the dollar, 0.89% stronger than its previous close.

READ MORE: Uganda passes a law making it a crime to identify as LGBTQ

The dollar index, which measures the currency against six rivals, was last trading down 0.44% at 101.99.

Headline inflation in South Africa rose slightly in February to 7% from 6.9% in January, data showed on Wednesday, fuelling bets that the South African Reserve Bank (SARB) would hike interest rates by 25 bps at its meeting next week.

“The latest headline CPI print corroborates the case for the SARB to remain hawkish next week.
(Reuters)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

19 + 4 =