South African rand pares losses before Powell speech
The South African rand strengthens against the dollar as market sentiment improves ahead of a speech by the U.S. Federal Reserve Chair, which could signal future interest rate hikes in the U.S.
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Posted 8/25/2023, 12:14:00 PM
reuters.com
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Most emerging market currencies were subdued as investors awaited the U.S. Federal Reserve chair's speech, while South Africa's rand rallied after inflation slowed and China stocks fell despite a share buyback rush.
The South African rand strengthened nearly 2% against the U.S. dollar after July inflation data came in lower than expected and the dollar weakened.
The South African rand weakened by 1% against the US dollar on the last day of the BRICS summit, due to the strength of the dollar ahead of the Federal Reserve's Jackson Hole symposium, while most emerging market currencies were also affected by concerns over hawkish posturing by central bankers.
The South African rand weakened as the dollar rebounded and credit extension in the country slowed more than expected.
The South African rand weakened against the dollar as markets await U.S. inflation data that could impact the Federal Reserve's interest rate decisions.
The South African rand remains steady ahead of interest rate announcements, with analysts expecting rates to be kept unchanged but with a hawkish outlook due to concerns of inflation and higher oil prices.