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South African rand slides to seven-month low ahead of inflation, rate decision

By Reuters News

JOHANNESBURG, Nov 13 (Reuters) - The South African rand hit a seven-month low on Friday as investors weighed US producer inflation data and looked ahead to next week's local inflation release and central bank interest rate decision.

  • At 1405 GMT the rand traded at 16.9750 against the dollar , roughly down 1.2% from its previous close and nearing the 17 per dollar level, which would be its weakest level since April

  • US producer prices increased further in October, leading to the largest annual gain in four years and supporting expectations that the Federal Reserve could continue raising interest rates after next month's widely expected hike

  • Like other risk-sensitive currencies, the rand is often driven by global factors, including US economic data and monetary policy

  • Statistics South Africa will release October consumer inflation data ZACPIY=ECI on Wednesday, followed by the South African Reserve Bank's monetary policy decision ZAREPO=ECI on Thursday.

  • At its September meeting, the central bank increased interest rates by 25 basis points, citing persistent price pressures stemming from the war in Iran and the need for tighter policy to keep inflation expectations anchored

  • On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was last down 0.7%

  • South Africa's benchmark 2035 government bond also weakened, with the yield rising 5 basis points to 8.545%

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