Meanwhile the inflation figures had little impact on the rand with the consumer price index (CPI) 5.1percent year-on-year in July 2018 from 4.6percent in June, the 16th consecutive month below the SA Reserve Bank’s upper-target level of 6percent but somewhat higher than market expectations of 5percent.
Corporate treasury manager at Peregrine Treasury Solutions, Bianca Botes, said earlier that higher-than-expected CPI figures would surely put pressure on the rand and interest rate hikes would become a reality.
“While inflation is expected to have bottomed and an approach towards the upper band of the inflation target range is expected, the weak rand is likely to accelerate this move which will see already strained consumers come under further pressure,” said Botes.
At 5pm, the rand bid 6c firmer than Tuesday’s same time bid at R14.30 to the dollar. Against the pound, the rand was 2c stronger at R18.45 and to the euro, the currency eased 4c to R16.58.