Rates decision, dollar prop up rand
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.