The South African rand climbed today on the speculation that the accelerating inflation will prompt the nation’s central bank to increase the borrowing costs.
Reserve Bank Deputy Governor Daniel Mminele said that data shows an “accelerating trend” in the food prices. He added that influence of higher food and fuel prices on prices for other goods “need to be monitored very closely”. The government report about the inflation will be released today. It’s expected to show growth by 4 percent.
USD/ZAR dropped from 6.807 to 6.688 today as of 8:24 GMT.
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