Rates de­ci­sion, dol­lar prop up rand

The Star Early Edition - - MARKETS -

THE RAND firmed yes­ter­day, sup­ported by a glob­ally vul­ner­a­ble dol­lar and the cen­tral bank’s de­ci­sion to keep key lend­ing rates steady as it warned of risks to the in­fla­tion out­look.

At 5pm, the rand was bid at R13.3167 to the dol­lar, 21.77c stronger than at the same time on Mon­day.

The SA Re­serve Bank kept its bench­mark repo rate un­changed at 7 per­cent, say­ing the near-term out­look of in­fla­tion had de­te­ri­orated while the do­mes­tic growth out­look re­mained con­strained.

Wor­ries over the im­pact of US Pres­i­dent Don­ald Trump’s pro­tec­tion­ist trade stance weighed on the dol­lar, help­ing lure in­vestors to emerg­ing mar­kets.

Gov­ern­ment bonds firmed along­side the cur­rency yes­ter­day.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.