Rand gains

THE rand gained further ground against the dollar on Thursday afternoon on upbeat local manufacturing data and subdued consumer inflation numbers for September out of the US.

The rand gains are linked to improved economic prospects under new finance minister Tito Mboweni and a possible pause by the US Federal Reserve in hiking rates further after the International Monetary Fund (IMF) downgraded expected global GDP growth for 2018 and 2019.

US inflation rose 2,3percent in September from 2,7percent in August and 2,9percent in July.

A second month of falling inflation will strengthen market concerns that the Fed is set to continue with interest-rate hikes in an environment of low inflation, which could ultimately affect economic growth negatively.

Core inflation in the US, the Fed’s preferred measure of price pressures in the economy, was unchanged at 2,2percent.

The euro gained on the dollar after the release of the data, hitting $1,1592 from $1,1517.

Locally, manufacturing production data came in slightly more positive than expected, rising 1,3percent in August (from a predicted 1,2percent), and 2.8percent in the previous month.

At 2.53pm the rand was at R14.5578 to the dollar from R14,7873, at R16,8674 to the euro from R17,031 and at R19,2704 to the pound from R19,4911.

The euro was at $1,587 from $1.,517. — Business Live.