to a five-month high on Wednesday, as expectations that the central bank will raise interest rates later this week and portfolio inflows helped it to recover from a dip earlier in the day.
Investors worldwide braced for more aggressive US rate hikes after Federal Reserve chairman Jerome Powell on Monday flagged further and faster tightening of monetary policy to deal with higher inflation than previously anticipated.Higher rates in developed markets tend to drain capital from riskier emerging markets. However, South Africa and other commodity exporters have seen their currencies appreciate since Russia invaded Ukraine almost a month ago.
Expectations of further rate hikes by the South African Reserve Bank, which is set to announce its repo rate decision on Thursday, as well as investors inflows, are also boosting the rand, she said.
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