JOHANNESBURG (Reuters) -South Africa’s rand slipped against a stronger dollar on Thursday, 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 against the U.S. dollar, 0.41% weaker than its previous close.
The dollar 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 Kganyago said 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 index closed 0.34% higher.
South Africa’s benchmark 2030 government bond 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)
