South African rand gains as central bank holds rates
(Updates after MPC meeting)
JOHANNESBURG, Sept 23 (Reuters) - South Africa's rand gained strongly on Thursday, as the dollar fell on global markets and the central bank held its main interest rate at a record low.
At 1510 GMT, the rand ZAR=D3 was trading at 14.6700 against the dollar, around 1.1% firmer than its previous close.
Although the South African Reserve Bank's (SARB) decision to keep its repo rate on hold at 3.5% ZAREPO=ECI was expected, some traders took the implied rate path in the bank's Quarterly Projection Model as a sign that the scales were tipping towards a future rate hike.
Carmen Nel, economist and macro strategist at Matrix Fund Managers, said in a research note that the Monetary Policy Committee's (MPC) statement was hawkish enough to keep the door open should the SARB need to act soon.
The safe-haven dollar .DXY was down 0.5% against a basket of peer currencies, as risk sentiment improved globally.
Johannesburg-listed stocks rose, with the All-share index .JALSH ending up 1.1% at 64,049 points and the Top-40 index .JTOPI closing up 1.2% at 57,643 points.
The government's benchmark 2030 bond ZAR2030= fell, with the yield rising 6 basis points to 9.145%.
Reporting by Olivia Kumwenda-Mtambo and Alexander Winning; Editing by Nick Macfie
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