The South African rand fell today after the data showed that consumer inflation slowed last month, triggering speculations that the nation’s central bank would cut its interest rates on the next policy meeting.
The Consumer Price index fell to 4.9 percent in July from 5.5 percent in June. Analysts expected a drop, but thought it would smaller — to 5.2 percent. The unfavorable domestic fundamentals added to worries caused by the negative data overseas. The South African Reserve Bank reduced its rates once this year and now forecasters say that it may do so again.
USD/ZAR 8.2662 to 8.3043 as of 15:21 GMT today.
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