In early trade on Thursday, the rand fell against the dollar as U.S. yields increased. The rand was trading at 18.2200 against the dollar at precisely 06:47 GMT, which is 0.58 percent weaker than its previous close and puts the rand at 18.2200 against a basket of other currencies.
According to a note from ETM Analytics, “the current argument is whether the inflation readings justified interest rates remaining higher for longer or will need to climb a little further than anticipated.
The statement by Neel Kashkari, president of the Minneapolis Federal Reserve Bank, caused the Top-40 futures index of the JSE Securities Exchange to drop by about 0.5 percent at the beginning of trading at 07:00 GMT. Kashkari stated that he was “open-minded” about a rate increase of either 25 or 50 basis points at the next meeting of the US Federal Reserve.