THE rand was weaker at midday on Wednesday after local inflation came in higher than expected, according to data released by Statistics SA earlier in the day.
The February consumer price index (CPI) came in at 7% year on year from 6.2% year on year in January.
Inflation rose significantly last month compared with a year ago, mainly due to higher food, fuel and medical insurance prices.
Standard Bank expected inflation, as measured by the consumer price index (CPI), to have accelerated to 6.9% year on year in February.
At 11.42am, the rand was trading at R15.3344 to the dollar from R15.2090 at Tuesday’s close.
It was at R17.1599 against the euro from R17.0545 previously and at R21.7375 against the pound from R21.6150 previously.
Treasury One’s chief currency dealer Wichard Cilliers said risk aversion and a stronger dollar might hinder the rand from having another crack at the R15.20 to the dollar level.
However, the higher than expected local inflation figure for February might add to market speculation of further rate hikes from the South African Reserve Bank, he said. If further hikes were expected the rand could make a brief attempt at R15.20 to the dollar. "We expected the rand to trade between R15.15 and R15.35 to the greenback today," Mr Cilliers said.
Picture: BLOOMBERG/WALDO SWIEGERS
THE rand was weaker at midday on Wednesday after local inflation came in higher than expected, according to data released by Statistics SA earlier in the day.
The February consumer price index (CPI) came in at 7% year on year from 6.2% year on year in January.
Inflation rose significantly last month compared with a year ago, mainly due to higher food, fuel and medical insurance prices.
Standard Bank expected inflation, as measured by the consumer price index (CPI), to have accelerated to 6.9% year on year in February.
At 11.42am, the rand was trading at R15.3344 to the dollar from R15.2090 at Tuesday’s close.
It was at R17.1599 against the euro from R17.0545 previously and at R21.7375 against the pound from R21.6150 previously.
Treasury One’s chief currency dealer Wichard Cilliers said risk aversion and a stronger dollar might hinder the rand from having another crack at the R15.20 to the dollar level.
However, the higher than expected local inflation figure for February might add to market speculation of further rate hikes from the South African Reserve Bank, he said. If further hikes were expected the rand could make a brief attempt at R15.20 to the dollar. "We expected the rand to trade between R15.15 and R15.35 to the greenback today," Mr Cilliers said.
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