Economic news

ZAR Gains as Softer USD Offsets Reduced Fed Cut Hopes

JOHANNESBURG, March 16 (Reuters) - The South African rand strengthened on Monday, ‌as a softer dollar helped offset fading hopes of a near-term interest rate cut by the ​U.S. Federal Reserve due to the ​elevated energy prices.

  • At 1448 GMT the ⁠rand traded at 16.77 against the dollar , ​more than 1% stronger than its previous close.

  • The ​greenback was down 0.4% against a basket of currencies.

  • Gold prices, a key South African export, were steady on ​Monday after recovering from an earlier near ​1% drop, supported by a softer dollar.

  • On the Johannesburg ‌Stock ⁠Exchange, the Top-40 index was last up 1.3%.

  • South Africa's benchmark 2035 government bond was also stronger, as the yield fell 2 basis ​points to ​8.91%.

  • Later this ⁠week local investor attention will turn to February inflation data and ​January retail sales numbers.

  • South African inflation ​expectations continued ⁠to fall in the first quarter of this year, a survey showed on Monday, with ⁠the ​average forecast for inflation ​over the next five years reaching a record low.

Reporting by ​Anathi Madubela and Sfundo Parakozov; Editing by Ros Russell

Source: Reuters


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