JOHANNESBURG (Reuters) -South Africa’s rand slipped on Wednesday, after data showed U.S. consumer prices rose more than expected last month, raising the prospect of the Federal Reserve holding interest rates higher for longer.
At 1520 GMT, the rand traded at 18.55 against the U.S. dollar, more than 0.2% lower than its previous close.
The dollar index was last up about 0.4% against a basket of currencies.
The U.S. consumer price index jumped 0.5% in January after gaining 0.4% in December, the Labor Department’s Bureau of Labor Statistics (BLS) said on Wednesday.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy in the absence of major local drivers.
Fed Chair Jerome Powell told the U.S. Congress on Tuesday that the central bank was not in a hurry to cut interest rates and a reduction would be considered only if inflation eased or the job market weakened.
On the stock market, the Top-40 index hit a fresh high and closed up about 0.5%.
South Africa’s benchmark 2030 government bond was weaker, with the yield up 5.5 basis points at 9.205%.
(Reporting by Sfundo Parakozov and Bhargav Acharya; Editing by Tannur Anders, Sherry Jacob-Phillips and Alex Richardson)
