The rand briefly broke through the R13 resistance level against the dollar in late morning trade on Wednesday, but could not hold on to the 18-month high, falling back over R13/$ at midday. Lower inflation data supported the local currency. Consumer inflation data released in the morning showed a fall in inflation from 6.8% in December to the expected level of 6.6% in January. The rand rallied on Tuesday after the release of labour force data by Statistics SA, among other reasons. The report showed that unemployment fell to 26.5% in the fourth quarter of 2016, was down from the previous quarter’s 27.1% and below the expected level of 27%. There was an increase in people employed, a rise in the participation rate and a higher proportion of the workforce with a matric certificate, Statistics SA said. The dollar was firmer at midday after US Federal Reserve chair Janet Yellen told the US senate banking committee it was likely that there would be a US interest-rate increase at an upcomi...
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