* Inflation at 6.0 pct, as expected
* Retails sales boom surprises
By Vuyani Ndaba
JOHANNESBURG, April 18 (Reuters) – South Africa’s rand
weakened against the dollar on Wednesday in choppy trade that
tracked the euro, which fell for a second straight session as
euro zone debt worries mounted.
Positive economic data showing a jump in retail sales and
inflation falling to within the Reserve Bank’s target range did
little to support the currency, which has been overshadowed by
developments in its major trading partner.
The rand was 0.28 percent weaker against the U.S
dollar at 1655 GMT, trading at 7.8067 from New York’s Tuesday ‘s
close of 7.785.
“We kind of exaggerated the down move yesterday,” said Jim
Bryson, a trader at Rand Merchant Bank.
“There is extremely volatile trading within ranges, but we
are certainly not breaking out of ranges,” added Bryson.
South Africa’s headline inflation slowed in March to within
the central bank’s target range for the first time in four
months, suggesting inflation may undercut the bank’s forecasts
and ease pressure for action in the form of an interest rate
rise.
Continued…
