The rand perked up a little on Wednesday morning, after consumer inflation rose in line with market expectations. Headline inflation rose at an annual rate of 4.8% in August, from 4.6% in July, according to Statistics SA data. The pick-up in inflation and the renewed volatility in the rand is likely to worry the Reserve Bank’s monetary policy committee (MPC), which is widely expected to cut the repurchase rate by at least 25 basis points. Markets were also keeping an eye on the outcome of the US Federal Reserve’s policy meeting on Wednesday night. The Fed is widely expected to leave rates unchanged on Wednesday night, but is expected to give signals on future policy moves. The rand is sensitive to US monetary policy changes, which affect the flow of funds. In recent days, the local currency has come under renewed pressure as the dollar recovered because of improved perceptions that the US Fed could raise rates in December. "The pressure on emerging markets’ forex markets continues, ...
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