South African rand firms ahead of central bank rate decision

Kitco Media
By Reuters
Published:
Updated:
Reuters
JOHANNESBURG, March 30 (Reuters) - South Africa's rand firmed in early trade on Thursday, ahead of a central bank interest rate decision later in the day. At 0637 GMT, the rand traded at 18.1025 against the dollar, 0.11% stronger than its previous close. The South African Reserve Bank (SARB) is due to announce its latest monetary policy move at a news conference starting around 1300 GMT, with investors expecting a 25-basis-point increase. "Market focus is likely to rest on the statement and the projections with the new rate outlook," Elisabeth Andreae, FX analyst at Commerzbank, said in a research note, adding that the hike is largely priced in by markets.


Statistics South Africa data showed last week that February inflation rose to 7.0% year on year from 6.9% in January, remaining above the bank's target of between 3% and 6%. The government's benchmark 2030 bond was stronger in early deals, with the yield down 3 basis points to 9.785%. (Reporting by Anait Miridzhanian; Editing by Bernadette Baum)

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