South African rand slips after US retail sales data
Updates prices
JOHANNESBURG, Oct 17 (Reuters) -South Africa's rand slipped against a stronger dollar onThursday, after data showed U.S. retail sales rose more than expected, signalling a resilient U.S. economy.
At 1511 GMT, the rand traded at 17.7150 againstthe U.S. dollar ZAR=D3, 0.41% weaker than its previous close.
The dollar =USD last traded 0.21% firmer against a basket of currencies.
U.S. retail sales increased 0.4% last month, slightly higher than the 0.3% rise predicted by the economists polled by Reuters, cementing expectations for a smaller 25-basis-point cut to interest rates by the Federal Reserve next month.
Like most emerging market currencies, the rand often takes direction from global drivers like U.S. economic data and monetary policy in addition to local economic events.
Earlier on Thursday, South Africa's central bank governor Lesetja Kganyagosaid the country could move to a lower inflation target at little cost.
September domestic inflation figures are due next week, which will provide further clues on price pressures in Africa's most industrialised economy.
On the stock market, the Top-40 .JTOPI index closed 0.34% higher.
South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 7.5 basis points to 9.305%.
Reporting by Tannur Anders and Bhargav Acharya; Editing by Sumana Nandy and Sharon Singleton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
