May 22, 2024 06:26 GMT
Rand Soars To Multi-Month Highs, S. African CPI On Tap
SOUTH AFRICA
- USD/ZAR sold off to its worst levels since early August as the combination of optimism on domestic political front continued to support the rand, alongside broader-picture themes of firmer precious metals and hawkish SARB rhetoric. Analysts have recently been suggesting that the perceived odds of the worst post-election scenarios coming to fruition have declined, which has supported local assets.
- South African April CPI data will cross the wires at 09:00BST/10:00SAST. Headline inflation may have stayed at +5.3% Y/Y, according to Bloomberg consensus, while core CPI may have eased to +4.7% Y/Y from +4.9% prior. The SARB is trying to anchor both metrics at +4.5%. the mid-point of its target range.
- Eskom CEO Dan Marokane said that the utility will likely delay the decommissioning of at least three coal-fired power plants by several years, but will seek to compensate through interventions across the rest of the generation fleet to lower emissions. This is to ensure that South Africa's climate commitments are not derailed.
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