Rand extends recovery as dollar falters on Donald Trump’s comments
Though still much weaker than it was in July, the rand has pulled back significantly from its recent worst level of more than R15 to the dollar
The rand gained further ground on Wednesday afternoon, helping to alleviate concerns of another potential increase in fuel prices early in September. A series of fuel-price increases in 2018 has led to record highs, which are contributing greatly to inflation. The consumer price index (CPI) rose to its highest level in nearly a year in July — 5.1%, up from 4.6% in June — into the upper end of the South African Reserve Bank’s 3% to 6% target range. Though still much weaker in the month to date, the rand has pulled back significantly from its recent worst level of more than R15 to the dollar. Investec economist Annabel Bishop said in a note that the Bank could strike a more hawkish tone during its scheduled meeting in September, meaning that it could flag potential increases in rates in future meetings, given the volatility in the rand. The rand’s recovery on Wednesday came courtesy of a weaker dollar, after US President Donald Trump took a swipe at the US Federal Reserve for its inte...
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