The South African rand rallied against the US dollar and the euro today after falling earlier due to disappointing macroeconomic data. It looks like the market sentiment was positive enough to support the currency.
South Africa’s Producer Price Index rose by 4.9% in July, year-on-year. That was a noticeable slowdown from June’s 5.8% rate of growth and trailed market expectations of a 5.4% increase. In fact, that was the lowest inflation rate since February.
USD/ZAR fell from 15.3696 to 15.2846 as of 18:06 GMT today, retreating from the daily high of 15.4817. EUR/ZAR dropped from 17.0327 to 16.8926 after rising to the session maximum of 17.1606 earlier.
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