South African rand firms ahead of cenbank move; stocks slide
Staff, 2022-09-22 13:58:21,
Sept 22 (Reuters) – South Africa’s rand inched higher on Thursday ahead of a large rate hike expected from the country’s central bank, while emerging market stocks hit near 28-month lows after an aggressive view for U.S. rates from the Federal Reserve.
The rand ZAR= gained 0.4% to trade at 17.6 to the dollar, with investors eyeing a likely 75 basis points hike by the South African central bank in a bid to help bring inflation back within its 3%-6% target range. Read full story
Data on Wednesday showed August inflation eased to 7.6% year on year from 7.8% in July, still well above the target, although it suggested that inflation may have passed its peak. Read full story
Meanwhile, the Fed on Wednesday lifted its policy rate by 75 basis points for the third time and projected raising rates further and faster than investors had expected. Read full story
“The message was more hawkish than expected, so the market is taking in the information and you may see volatile sessions till end of the week,” said Cristian Maggio, head of portfolio and ESG strategy at TD Securities.
The dollar surged to a fresh two-decade high and Asian…
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