South African Rand slips as central bank warns on price pressures
South Africa’s Rand slipped on Tuesday against the dollar, as the central bank warned core inflation in the country remained elevated and a leading business cycle indicator fell.
At 1530 GMT, the rand traded at 18.3825 against the dollar , about 1.35 percent weaker than its closing level on Monday.
The dollar index, which measures the greenback against six major currencies, was last up around 0.57 percent.
The South African Reserve Bank (SARB) said in its April Monetary Policy Review that headline inflation had peaked but core inflation remained elevated, putting upward pressure on the consumer prices outlook.
Earlier in the day, the SARB’s leading indicator for February decreased 0.7 percent month on month, falling for the third consecutive month.
The indicator collects data on vehicle sales, business confidence, money supply and other factors to gauge the outlook for Africa’s most industrialised economy.
Rand moves could be volatile later this week as upcoming public holidays mean many traders will be away from their desks from Wednesday’s close until next Tuesday.— Reuters
