Relief over US inflation drives rand up the most since 2017
Below-forecast US inflation data prompts bets that the Federal Reserve will slow the pace of hikes, boosting emerging market currencies
The rand featured on the gainers’ list of emerging-market currencies on Wednesday, strengthening by its biggest margin since mid-December 2017 after below-forecast US inflation data prompted bets that the Federal Reserve will slow the pace of interest rate hikes.
Underlying inflation was unchanged last month after advancing 1.3% in June, the US labour department said in a closely watched report. The report shows underlying inflation pressures remain elevated as the Federal Reserve mulls another supersized interest rate hike in September. The reading was the largest month-on-month deceleration of price increases since 1973 and followed a drop of about 20% in the cost of petrol...
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