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Rand steady after Sarb holds rates

Johannesburg - The rand retreated on Thursday after the central bank kept interest rates on hold, while stocks fell as the prices of commodities such as gold, silver and platinum slid on bets of a US rate hike.

At 1620 GMT the rand was about flat at 0.09% to 15.8850 per dollar, nearer the 16.00 psychological level it last hit on March 16 as the dollar gained.

The currency was volatile, turning weaker after South Africa's Reserve Bank left its benchmark lending rate unchanged at 7% and expectations that the United States could raise rates as soon as next month.

South Africa's central bank said it faced a policy dilemma of high inflation and low growth.

Traders and economists said the bank's downbeat growth outlook and view that risks to inflation remained in play pressured the currency.

"We think that the Reserve Bank's decision to keep rates on hold at the May meeting was appropriate, but that the SA Reserve Bank will continue to increase interest rates in the second half of 2016," said Stanlib chief economist Kevin Lings.

Government bonds firmed after the local rates decision, with the benchmark paper due in 2026 shedding 8.5 basis points to 9.44%.

On the bourse, AngloGold Ashanti slipped 5% to R223.30 while Gold Fields shed 6 percent to R62.93 as gold fell more than 1%.

The benchmark Top-40 index fell 0.69% to 46 312 points while the broader All-share index lost 0.81% to 52 370 points.

Trade was relatively low with 218 million shares changing hands versus last year's daily average of 280 million shares.

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Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
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