The rand extended earlier gains against hard currencies on Friday afternoon, after US inflation data for June came in softer than expected. The US consumer price index was up 1.6% from a year earlier, the fourth straight month annual gains had eased, reported Dow Jones Newswires. A consensus forecast from economists polled by Bloomberg had estimated inflation to come in at 1.7%. US retail sales fell 0.2% in June, suggesting that consumers had little appetite despite a generally upbeat economic outlook, the newswire said. After the announcement the rand strengthened more than 1%, or 18c, extending gains made since Wednesday. The firmer rand followed comments by US Federal Reserve chair Janet Yellen this week that the Fed could reassess plans to raise interest rates if inflation remained muted. Rising interest rates in the world’s largest economy would narrow the relative yield between treasuries and emerging-market bonds. Nomura analysts said after the Turkish lira, the rand was the ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.