Rand Surges After South Africa Flags Inflation-Target Change

The rand surged to its strongest level against the dollar in two months and government bond yields fell after South Africa’s deputy finance minister said an announcement on the country’s inflation-targeting regime is imminent.

The South African Reserve Bank and National Treasury are “working very hard to establish the appropriate inflation framework” and an announcement would be made “very soon,” David Masondo said at an investor conference in Cape Town.