Rand does well as market digests data releases
The consumer price index eased to 6.3% in February from the corresponding annual rate of 6.6% in January, Statistics SA says
The rand was firmer at lunchtime on Wednesday after the consumer price index (CPI) moderated in line with expectations and the current account deficit narrowed sharply. The CPI eased to 6.3% in February, 0.3 of a percentage point lower than the corresponding annual rate of 6.6% in January, Statistics SA said on Wednesday. Xtrade chief market analyst Paul Sirani said although this was the second month of disinflation, 6.3% was still in the "danger zone", above the South African Reserve Bank’s target range of 3%-6%. This could dampen confidence for Africa’s largest economy, he said. During the fourth quarter, the current account deficit narrowed to 1.7% of GDP from 3.8%‚ exceeding expectations, with export growth outstripping that of imports. Prior to the release of the CPI and current account deficit data, Rand Merchant Bank analyst Isaah Mhlanga said that a narrowing current account deficit and the lower inflation should help the rand minimise losses for the day. He said markets see...
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