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Rand Stays Under Pressure Despite Strong CPI Print

ZAR

Spot USD/ZAR continues to operate near session highs, with gains for the BBDXY helping keep the rate afloat. The Rand is the second-worst performance in the EMEA space after the Hungarian Forint. The pair last deals at ZAR18.2953, up ~1,320 pips on the day.

  • February contraction in retail sales was smaller than expected. The annual change was -0.5% versus -1.0% expected. Still, it is another above-forecast CPI outturn that stole the limelight today, fanning hawkish SARB bets.
  • News24 reported that President Ramaphosa called an urgent Cabinet meeting to discuss a plan to slow down the decommissioning of old coal power stations, which conflicts with the country's climate commitments tied to foreign funding.

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