US banking giant drops its bet on the Rand after SARB's no change on rates

South Africa’s Central Bank Turns Dovish, Sending the Rand Toward 17 per Dollar

Currency · South Africa Key Facts —The turn. The South African Reserve Bank (SARB) struck an unexpectedly dovish tone at its July meeting. —The rate. The bank held its key repo rate at 7.0% while signalling a softer path ahead. —The rand. The currency weakened, with the dollar climbing from below 16.50 rand toward the […] The post South Africa’s Central Bank Turns Dovish, Sending the Rand Toward 17 per Dollar appeared first on The Rio Times.

US banking giant drops its bet on the Rand after SARB's no change on rates

South Africa's Reserve Bank stunned markets on Thursday, holding the repo rate at 7% in a split 4-2 vote - defying 17 of 20 economists polled, who had expected a hike after inflation jumped to 5% in June. The rand promptly weakened against both the euro and the dollar, its worst session since March. Below, Citigroup explains why it just closed a bullish rand bet at a $468,000 loss, and why it now sees the currency as "fragile" heading into a per…