Rand at 2001 Low Risks Forcing Kganyago’s Hand to Raise Rates
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The rand’s tumble to the lowest level in more than 13 1/2 years risks forcing South Africa’s central bank into a steeper interest-rate increase to ward off inflation and entice investors to buy the nation’s assets.
The currency of Africa’s most industrialized economy dropped to 12.8282 per dollar on Wednesday, the lowest since December 2001, on speculation the Federal Reserve will raise interest rates next month, which would draw investors to the dollar. The rand may weaken to 13 before the end of the year, according to London Capital Group Ltd.