South African rand gains as central bank holds rates
(Updates after MPC meeting)
JOHANNESBURG, Sept 23 (Reuters) - South Africa's rand gained
strongly on Thursday, as the dollar fell on global markets and
the central bank held its main interest rate at a record low.
At 1510 GMT, the rand was trading at 14.6700
against the dollar, around 1.1% firmer than its previous close.
Although the South African Reserve Bank's (SARB) decision to
keep its repo rate on hold at 3.5% was expected,
some traders took the implied rate path in the bank's Quarterly
Projection Model as a sign that the scales were tipping towards
a future rate hike.
Carmen Nel, economist and macro strategist at Matrix Fund
Managers, said in a research note that the Monetary Policy
Committee's (MPC) statement was hawkish enough to keep the door
open should the SARB need to act soon.
The safe-haven dollar was down 0.5% against a basket
of peer currencies, as risk sentiment improved globally.
Johannesburg-listed stocks rose, with the All-share index
ending up 1.1% at 64,049 points and the Top-40 index
closing up 1.2% at 57,643 points.
The government's benchmark 2030 bond fell, with
the yield rising 6 basis points to 9.145%.
(Reporting by Olivia Kumwenda-Mtambo and Alexander Winning;
Editing by Nick Macfie)
First Published: 2021-09-23 08:47:47
Updated 2021-09-23 17:22:21
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