The rand was much weaker on Monday morning, touching R12.25/$ for the first time since mid-January before Cyril Ramaphosa was sworn in as head of state.A weaker rand breeds inflation, which economists had expected to pick up from a seven-year low reached in March.Reserve Bank governor Lesetja Kganyago also cautioned in March that inflation might have reached a low point in the cycle, with increases in value added tax (VAT) and other indirect taxes expected to put upward pressure on prices.On Monday, the weakness in the local currency came courtesy of a strong dollar, as the expectation grew that higher oil prices will drag US inflation higher, thus leading the US Federal Reserve to increase interest rates at a faster rate.US inflation has consistently run below the Fed’s 2% target, prompting the world’s most influential central bank to be moderate in its rate-hiking cycle. The yield on the benchmark US 10-year note flirted with a symbolic 3% mark, which would mark its highest point ...
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