The South African rand pushed ahead on Wednesday against the world's reserve currency after economic data indicated inflation rose at its fastest rate in nearly five years, according to Bloomberg.
After checking in at 6.1 percent in April, inflation advanced at 6.6 percent in May, according to the nation's statistics agency. Yields on bonds set for maturity in 2026 dropped 1 basis point.
"Regardless of even a bit of current strength from the current-account numbers, inflation is still expected to breach the target band for far too long," economist Gina Schoeman with Citigroup Inc. in Johannesburg told the news source during the midweek trading session, also noting the dangers of inflation against the national economy. "If they don't hike by 25 basis points in July they'll have missed the opportunity."
The rand rose about 0.6 percent against the greenback.
Moneyweb reports the nation is enduring its lengthiest labor strike ever at its mines, which threatens shipments from the nation. Mining accounts for roughly 60 percent of exports from the African nation. The current-account deficit expanded while pushing up pressure on inflation.
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