The rand was on a shaky ground on Thursday morning, thanks to a dollar that has rebounded fairly sharply from its recent lows. The rand changed hands to the dollar at R13.12, which was near a three-week low, showing the vulnerability of the local currency to offshore events. Fresh optimism about potential tax cuts in the US improved the fortunes of the dollar, although some analysts say the greenback was oversold The release of US inflation data in the afternoon could provide fresh direction to the dollar and global markets. Consumer inflation, which the US Federal Reserve takes into account when deciding interest rates, is expected to have accelerated to an annual rate of 1.8% in August, from 1.7% in July. Despite clear signs that economic growth is picking up in the world’s largest economy, inflation has remained stubbornly below the Fed’s 2% target. "US CPI [consumer price inflation] is always one of the events closely watched as investors keep looking for indications for the nex...
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