South African rand firmer despite slowdown worries, stocks slide

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A South African Rand is seen in this illustration picture taken November 5, 2020. REUTERS/Mike Hutchings/Illustration

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June 14 (Reuters) – The South African rand strengthened on Tuesday, as the dollar consolidated gains near a two-decade peak amid fears that aggressive interest rate hikes by the Federal Reserve would push the U.S. economy into recession.

At 1559 GMT, the rand traded at 16.0525 against the dollar, 0.48% stronger than its previous close.

The dollar index , which measures the greenback against a basket of six major peers, was up around 0.2% at 105.39.

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BNP Paribas senior economist Jeff Schultz said in a note that the South African Reserve Bank was expected to maintain a 50 basis points pace of hikes for its three remaining meetings in 2022, followed by a final 25 bp hike in January 2023.

“We also would not rule out a 75 bp…

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