The South African rand rose today against the US dollar as the nation’s economic recovery remains strong, while the US recovery is stalling.
Deputy Governor Daniel Mminele said that South Africa’s inflation is “somewhat benign” compared with other emerging markets. Mminele added that the central bank have to find a way to deal with the inflation without endangering the strong economic recovery. These comments spurred talks that the bank will keep the benchmark interest rate at 5.5 percent, limiting the rand’s gains.
USD/ZAR fell from 6.9350 to 6.8780 before trading at 6.9170 as of 10:58 GMT today.
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