Rand slightly weaker after slight acceleration in inflation
The local currency is softer on Wednesday morning as investors digest consumer inflation data for July
The rand weakened very slightly against major global currencies on Wednesday morning, after consumer inflation for July accelerated slightly. Inflation accelerated to 5.1% in July from 4.6% in June. A Trading Economics consensus was for inflation to accelerate to 5% year on year in July from 4.6% in June, with upward pressure coming from increases in VAT and the fuel price. The debate will now turn to whether rising inflation and rand weakness will be sufficient to prompt a Reserve Bank interest rate increase, said TreasuryOne senior currency dealer Andre Botha. Globally, markets were rather flat, with investors digesting a number of looming events that could provide the market with direction. Turkish markets are closed for public holidays while a meeting between US and Chinese officials on trade issues is expected to get under way later in the day.
US President Donald Trump’s political difficulties are also expected to weigh on markets, analysts said, possibly hobbling his ad...
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