South Africa's rand rallies more than 1 pct after cenbank hikes rates

by Reuters 0

The rand raced to its firmest in three weeks on Friday following an aggressive interest rate hike by the South African Reserve Bank (SARB) as it looked to curb rising inflation.

At 0625 GMT, the rand had strengthened 1.05 percent to 16.0500 per dollar, its firmest since Jan. 8, extending a rally from the previous session following the central bank’s decision on Thursday to push benchmark lending rates up by 50 basis points.

The unit also gained against the British pound and the euro, by 0.4 percent and 0.9 percent respectively.