Rand on shaky floor forward of CPI
Andries Mahlangu | 2016-05-18 09:forty six:forty six.zero
Individuals stroll close to the reception on the Johannesburg Inventory Trade (JSE) in Sandton, Johannesburg.
Picture by: SIPHIWE SIBEKO / REUTERS
The rand was weaker on Wednesday morning as the main target turned to native inflation figures‚ due for launch at 10am.
The buyer worth index (CPI) is predicted to have eased to an annualised 6.2% in April from 6.three% in March‚ an end result which will lead the Reserve Financial institution to maintain rates of interest on maintain on Thursday.
The Financial institution has thus far raised charges by a cumulative seventy five foundation factors this yr to tame inflation‚ which has breached the focused three%-6% band.
In what’s shaping as much as be yet one more eventful for week‚ the rand faces the problem of a robust greenback along with political elements which are weighing on the native foreign money.
Rand Service provider Financial institution foreign money analyst John Cairns stated the potential of a US price hike was again on the desk after the discharge of upbeat US knowledge‚ together with inflation figures.
“CME (Chicago Mercantile Trade) futures suggest a 15% chance of a June transfer and a 33% chance of a transfer by July‚” Cairns stated.
At eight.52am‚ the rand was at R15.7388 to the greenback from R15.5463 at earlier shut. It was at R17.7583 towards the euro from R17.5853 beforehand‚ and at R22.7260 towards the pound from R22.4834 beforehand.
The euro was at $1.1284 from $1.1312.
– TMG Digital/BDlive