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Reuters
3 days ago
- Business
- Reuters
South African rand holds gains after SARB focuses on lower inflation target
JOHANNESBURG, May 30 (Reuters) - The South African rand held most of the previous day's gains in early trade on Friday, after the central bank stressed its strong preference for a lower inflation target at a monetary policy announcement. The South African Reserve Bank (SARB) presented detailed modelling of the impact of a 3% inflation target, compared to the 4.5% level it aims for at the midpoint of its current 3% to 6% target range. The SARB, which resumed interest rate cuts on Thursday after a pause in March, added that its Monetary Policy Committee felt a 3% target was "more attractive" and said it would continue to consider scenarios based on that target at future rate meetings. "Investors focused on the implications of a lower target, namely lower inflation, reduced interest rates, bond market inflows, and stronger long-term growth, which further support the rand," ETM Analytics said. Other factors that point to more rand resilience include a solid trade surplus, tight credit cycle and signs of prudence in government finances, the research firm added in a note. At 0650 GMT, the rand traded at 17.8425 against the dollar , about 0.1% weaker than Thursday's closing level. Weighing against the rand was a stronger dollar on global markets . The benchmark 2035 government bond was stronger in early deals, as the yield fell 4 basis points to 10.13%.
Reuters
12-05-2025
- Business
- Reuters
South African rand stable; local jobs and mining data due this week
JOHANNESBURG, May 12 (Reuters) - The South African rand was steady on Monday at the start of a week in which unemployment and mining figures are likely to be the main focus locally. At 0910 GMT, the rand traded at 18.22 against the dollar , little changed from Friday's closing level. The rand held steady despite the dollar surging on global markets as U.S. and Chinese officials pledged to slash reciprocal tariffs. South Africa's first-quarter unemployment data (ZAUNR=ECI), opens new tab is scheduled for publication on Tuesday, followed by March mining production (ZAMNG=ECI), opens new tab on Thursday. Oxford Economics said both releases were likely to disappoint, in line with its below-consensus forecast that gross domestic product would grow only 1% this year. South Africa's benchmark 2030 government bond was also little changed, with the yield up 1 basis point at 8.835%.
