South African rand reverses losses after U.S. CPI data
- Investors mainly focused on U.S. inflation data for further indications on the direction of lending rates in the world's biggest economy.
JOHANNESBURG: South Africa's rand reversed earlier losses on Tuesday, as traders digested news of strong gains in March U.S. inflation, though that was not expected to alter the Federal Reserve's commitment to keep interest rates at rock-bottom levels for years.
At 1505 GMT the rand was flat at 14.5600 per dollar, after hitting a session low of 14.6800.
The U.S. dollar fell to three-week lows after inflation data.
Investors mainly focused on U.S. inflation data for further indications on the direction of lending rates in the world's biggest economy.
Accommodative U.S. monetary and fiscal policy has fuelled flows to riskier emerging market assets, but a steady rise in Treasury yields has raised fears of a quicker rise in rates.
Stocks rose on the Johannesburg Stock Exchange (JSE) on Tuesday as global markets recovered after Monday's heavy sell-off.
The benchmark all-share index closed up 1.03pc at 67,072 points while the blue-chip index ended up 1.17pc to 61,383 points.
The gains were broad-based with most major indexes such as , resources and industrials ticking up on hopes that despite rising inflation, U.S. interest rates will not go up.
In fixed income, the yield on the benchmark 2030 government issue was down 1.5 basis points at 9.34pc.
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