Rand gains as dollar slips; inflation in focus

Rand gains as dollar slips; inflation in focus

The South African rand gained against the dollar in early trade on Monday as the US currency slipped on global markets, with local investors’ focus on inflation data this week.

At 0700 GMT, the rand traded at 18.0275 against the dollar, about 0.2% stronger than its closing level on Friday.

There are no major South African economic data releases on Monday, so the rand is likely to track dollar moves.

Analysts are looking to the March consumer price index (CPI) to gauge the success of the South African Reserve Bank’s interest rate hikes in taming price pressures.

March CPI will be released at 0800 GMT on Wednesday, with February retail sales due at 1100 GMT the same day.

The worst power cuts on record mean the prospects for growth in Africa’s most industrialised economy this year are bleak.

But in an interview with Reuters on Friday, Finance Minister Enoch Godongwana ruled out the chances of a recession this year.

Godongwana also reaffirmed his stance that the government would not provide further bailouts to struggling state power company Eskom despite the new electricity minister saying the country should not shy away from spending to fix the crisis.


Original Story by www.sowetanlive.co.za


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