Rand strengthens on likely rate hike
By TMG Editor - 19 June 2014
THE rand was nearly 10c stronger against the dollar yesterday as market players took positions on a possible rate hike next month.
Some analysts‚ however‚ believe further potential strength in the currency is limited.
The higher than expected increase in annual consumer inflation to 6.6% last month has raised the possibility that the Reserve Bank will increase the repo rate next month.
The rand also received some unexpected support from the contraction in the current account deficit in the first quarter to 4.5% of gross domestic product from a deficit of 5.1% at the end of last year. – BDlive
