JOHANNESBURG (Reuters) -South African assets gained on Wednesday, after a key U.S. inflation report showed consumer prices rose slightly more than expected last month in the world’s biggest economy.
At 1449 GMT, the rand traded at 18.7550 against the U.S. dollar, about 1% firmer than its previous close.
The dollar last traded about 0.45% weaker against a basket of currencies.
The U.S. consumer price index rose 0.4% last month while economists polled by Reuters had forecast the CPI gaining 0.3%. In the 12 months through December, the CPI advanced 2.9%, in line with expectations.
As markets remain wary of incoming U.S. President Donald Trump’s policies on tariffs, the latest data points to still elevated inflation, strengthening the case for the Federal Reserve’s cautious stance on interest rates.
“Volatility is expected to persist… with the rand’s value largely influenced by external factors such as U.S. trade and monetary policies,” said Zain Vawda, market analyst at MarketPulse by OANDA.
On the stock market, the blue-chip Top-40 index was last up about 1.9%.
South Africa’s benchmark 2030 government bond was also stronger, with the yield down 13 basis points at 9.175%.
(Reporting by Bhargav Acharya and Tannur Anders;Editing by Frances Kerry and Emelia Sithole-Matarise)
