The South African rand dropped today after data showed an increase of the nation’s current account deficit.
The South African Reserve Bank reported that the current account logged a deficit of 5% of GDP in the first quarter of 2016, up from 4.6% in the fourth quarter of 2015. The bank explained the rising shortage by the drop of mining output that followed the slump of global commodity prices. The news led to speculations that the central bank may raise interest rates despite tepid economic growth.
USD/ZAR rose 0.93% to 15.3124 as of 16:15 GMT today.
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