Rand tracks weaker euro despite positive local retail and inflation data
Slightly lower than expected inflationary pressure could lead to a less hawkish stance from the Reserve Bank, with rates likely to be kept on hold on Thursday
The rand was weaker on Wednesday afternoon as a rampant dollar overshadowed upbeat local inflation and retail sales data.Despite the weaker performance, analysts said the rand was holding up relatively well against other emerging-market currencies, including the Turkish lira, which has lost ground following signs that recently re-elected President Recep Tayyip Erdogan intends to tighten his grip on monetary policy."We have seen a weakening of the rand against the major currencies since February, together with relatively large foreign capital outflows from bond and equity markets over the past three months," said IG SA analyst Shaun Murison.However, year on year the rand is only 1.8% weaker against the dollar. Murison said rates would were likely to remain flat for the remainder of the year, before eventually being raised marginally in 2019.The dollar gained against the euro after US Federal Reserve chair Jerome Powell reiterated that the Fed was on track to raise interest rates furt...
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