South African Rand Rises as Softer US Dollar Offsets Weak Mining Data
South African rand strengthened against the US dollar as weaker-than-expected US inflation data outweighed disappointing domestic mining figures and weighed on demand for the greenback. South Africa's mining production fell 5.4% year over year in May after April's revised 8% increase, missing forecasts for a 1.5% gain, while monthly output declined 5.2%. The US dollar weakened after June consumer prices fell 0.4% from May, exceeding expectations for a 0.1% decline, while annual inflation slowed to 3.5% from 4.2%. The softer inflation data eased expectations for near-term Federal Reserve rate increases, sending the US Dollar Index down to around 100.6 and supporting the rand despite South Africa's weaker mining performance. At the time of writing, USD/ZAR was trading at 16.3264, down 0.79%
South African rand strengthened against the US dollar as weaker-than-expected US inflation data outweighed disappointing domestic mining figures and weighed on demand for the greenback.
South Africa's mining production fell 5.4% year over year in May after April's revised 8% increase, missing forecasts for a 1.5% gain, while monthly output declined 5.2%.
The US dollar weakened after June consumer prices fell 0.4% from May, exceeding expectations for a 0.1% decline, while annual inflation slowed to 3.5% from 4.2%.
The softer inflation data eased expectations for near-term Federal Reserve rate increases, sending the US Dollar Index down to around 100.6 and supporting the rand despite South Africa's weaker mining performance.
At the time of writing, USD/ZAR was trading at 16.3264, down 0.79%