The South African rand made strong gains, bolstered by bets that the U.S. Federal Reserve has reached the end of its interest rate hikes. The Fed raised interest rates by a quarter of a percentage point, as expected, but traders appeared unconvinced leaving the door open to another hike in September. Slowing inflation and the South African central bank’s decision to leave its main interest rate on hold have spurred buying of government bonds and contributed to the rand’s strong showing in July, with the currency now up more than 7% against the dollar.
Source : Reuters
