# Rand slumps almost 3% as hot US inflation data backs case for Fed rate hikes | News24

> The rand fell about 2.7% against the dollar to R15.83 after US consumer prices rose 8.6% year on year in May, above expectations. The data suggested the Federal Reserve may keep raising rates through September. The inflation report came ahead of an expected 50-basis-point Fed hike the following week.

- Date: 2022-06-10 · published 2022-06-10T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/41269-rand-slumps-almost-3-as-hot-us-inflation-data-backs-case-for-fed-rate-hikes
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Stronger US inflation and higher rate expectations lift the dollar, which raises the local cost of imported feed inputs for South Africa and can pressure dollar-priced commodities. The effect is mainly currency-driven.

## Read by commodity

- DXY: bullish ▲
- USDZAR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-02-10 | [Hot inflation fuels case for 'big-bang' Fed rate hike in March](https://feedsoft.ai/events/42644-hot-inflation-fuels-case-for-big-bang-fed-rate-hike-in-march.md) | -0.1% | +1.7% |
| DXY | 2023-04-28 | [US dollar firms as inflation data backs Fed hike; yen plunges](https://feedsoft.ai/events/36576-us-dollar-firms-as-inflation-data-backs-fed-hike-yen-plunges.md) | -0.3% | +1.2% |
| DXY | 2026-09-14 | [Copper Slips as Inflation Data Raises Bets on Fed Hiking Rates - Bloomberg](https://feedsoft.ai/events/17392-copper-slips-as-inflation-data-raises-bets-on-fed-hiking-rates-bloomberg.md) | +1.1% | +2.9% |
| DXY | 2022-09-13 | [C$ slides by most in 2 months on hot U.S. inflation data](https://feedsoft.ai/events/39820-c-slides-by-most-in-2-months-on-hot-u-s-inflation-data.md) | +1.4% | +3.5% |
| DXY | 2018-04-11 | [Fed minutes: 'All' members see higher GDP and inflation, and more rate hikes](https://feedsoft.ai/events/65431-fed-minutes-all-members-see-higher-gdp-and-inflation-and-more-rate-hikes.md) | -0.3% | +3.4% |

## Sources

- news24.com: https://www.news24.com/business/markets/rand-slumps-almost-3-as-hot-us-inflation-data-backs-case-for-fed-rate-hikes-20220610

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.