JOHANNESBURG: South Africa’s rand weakened on Friday after a strong US inflation report raised the prospect of more aggressive interest rate hikes globally, while talks between Russia and Ukraine brought little respite in the conflict between the two countries.
At 0650 GMT, the rand traded at 15.0725 against the dollar, 0.18% weaker than its previous close.
Investors braced for quicker tightening of monetary conditions after data on Thursday showed a 7.9% annualised jump in US consumer inflation in February, the largest increase in 40 years.
Sentiment also suffered as Russia’s war against Ukraine dragged on, after talks between their foreign ministers on Thursday yielded no signs that their conflict will de-escalate.
“With the lack of progress and the continued assault on Ukraine and its people, the sanctions from the West will keep coming which should ensure uncertainty remains high in the markets and any rallies vulnerable,” Craig Erlam, Senior Market Analyst at OANDA said.
The yield on the benchmark 2030 government bond was down 3 basis points to 9.870%.
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