(Updates prices to reflect afternoon trade and adds analyst
comments)
JOHANNESBURG, March 23 (Reuters) - South Africa's rand
strengthened against a weaker dollar on Thursday after the U.S.
Federal Reserve signalled that it would pause its interest rate
hiking path.
The Fed on Wednesday raised interest rates by a widely
expected 25 basis points (bps), but dropped language about
"ongoing increases" being needed in favour of "some additional"
rises, as it watches how wobbling confidence in banks affects
the economy.
At 1546 GMT, the rand traded at 18.0325 against the
dollar, 1.52% stronger than its previous close.
The dollar index , which measures the currency against
six rivals, fell more than 0.3% to 102.12.
"The world has been so dominated by dollar strength over
many, many years... I think we may be in for a sustained period
of relative dollar weakness", said Wayne McCurrie, portfolio
manager with FNB.
Headline inflation in South Africa rose slightly in February
to 7% from 6.9% in January, data showed on Wednesday, fuelling
bets that the South African Reserve Bank (SARB) would hike
interest rates by 25 bps at its meeting next week.
Stocks on the JSE closed slightly higher, with both the
blue-chip Top 40 and its broader all-share index ending the day up more than 0.4%.
The government's benchmark 2030 bond was
stronger, with the yield down 4.5 bps to 9.950%.
(Reporting by Bhargav Acharya and Tannur Anders; Editing by
Sonia Cheema, Anait Miridzhanian)
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