JOHANNESBURG: South Africa’s rand slipped on Wednesday as the dollar soared after data showed U.S. inflation rose in March, dampening hopes of an interest rate cut by the Federal Reserve in June.
At 1557 GMT, the rand traded at 18.77 against the dollar, 1.68% weaker than its previous close.
Data showed the U.S. Consumer Price Index (CPI) rose 0.4% on a monthly basis and 3.5% annually in March, above forecasts of economists polled by Reuters.
The dollar index jumped after the inflation report, last trading up about 1.08% against a basket of global currencies.
There are no economic data releases scheduled in South Africa until Thursday, when gold and mining production and manufacturing figures for February will be released.
With general elections just over six weeks away, market uncertainty has also fuelled rand weakness, after an opinion poll released earlier on Wednesday put the governing African National Congress’s voter support at 37%.
On the stock market, the Top-40 and the broader all-share indices closed near their previous levels.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 7 basis points at 10.560%.
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