The rand ended last week 2 percent stronger against the dollar as Minister of Finance Malusi Gigaba aired his 14-point plan to ignite inclusive growth.
However, the rand’s volatility was expected to continue this week with all eyes on the release of South Africa’s inflation numbers and the decision of the SA Reserve Bank on its benchmark repo rates, both expected later this week.
The rand in early trade on Friday was trading at R13.22 to the greenback but strengthened to a high of R12.99 in intra-day day trade after US inflation and retail sales figures came in lower than expected before correcting to R13.04 by 5pm.
The US headline inflation declined to 1.6 percent June, from 1.9 percent in May, while its core inflation – stripping out food and energy prices – remained unchanged at 1.7 percent. Retail sales numbers in the US also declined by 0.2percent in June, following a decrease of 0.1 percent in the prior month.
Author: Staff Writer