UPDATE 1-South African rand reverses losses after U.S. CPI data

  • Reuters
  • Forex News
UPDATE 1-South African rand reverses losses after U.S. CPI data
Credit: © Reuters.

(Updates rand , bonds; adds stocks)

JOHANNESBURG, April 13 (Reuters) - South Africa's rand reversed earlier losses on Tuesday, as traders digested news of strong gains in March U.S. inflation, though that was not expected to alter the Federal Reserve's commitment to keep interest rates at rock-bottom levels for years.

At 1505 GMT the rand ZAR=D3 was flat at 14.5600 per dollar, after hitting a session low of 14.6800. The U.S. dollar fell to three-week lows after inflation data. mainly focused on U.S. inflation data for further indications on the direction of lending rates in the world's biggest economy.

Accommodative U.S. monetary and fiscal policy has fuelled flows to riskier emerging market assets, but a steady rise in Treasury yields has raised fears of a quicker rise in rates.

Stocks rose on the Johannesburg Stock Exchange (JSE) on Tuesday as global markets recovered after Monday's heavy sell-off.

The benchmark all-share index .JALSH closed up 1.03% at 67,072 points while the blue-chip index .JTOPI ended up 1.17% to 61,383 points.

The gains were broad-based with most major indexes such as .JBANK , resources .JRESI and industrials .JINDI ticking up on hopes that despite rising inflation, U.S. interest rates will not go up.

In fixed income, the yield on the benchmark 2030 government issue ZAR2030= was down 1.5 basis points at 9.34%.

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