South African rand rallies after inflation data

The South African rand rallied on Wednesday, after new inflation data showed consumer price growth easing to lower than expected levels and amid a broad rise among emerging market currencies.

The rand rallied 1.7 per cent against the dollar on Wednesday morning to R14.64. Several other EM currencies that are actively traded during the European day, including the Turkish lira, also advanced.

The inflation release comes ahead of Thursday’s rate decision from the South African Reserve Bank’s monetary policy committee. Economists polled by Reuters expect the central bank to keep rates on hold for the moment.

The headline consumer price index showed prices were 4.9 per cent higher in August compared to the same period last year. Economists had predicted the index would increase to 5.1 per…

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