Stocks hit new high and rand extends gains

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The rand hit a 10-month high, extending gains after data on Tuesday showed a stronger-than-expected economic rebound for in the third quarter.

Further, headline consumer price inflation slowed to 3.2% in November from 3.3% in October, only adding to expectations of further monetary policy easing by the central bank, which kept its main lending rate on hold at 3.5% last month.

"Maybe the central bank cuts rates again and weakens the carry trade, that could be a reason for a pullback. Except for that, we should be expecting a confirmation of the strength." The Hungarian forint reversed some of its recent losses against the euro ahead of the EU summit on Thursday.

 

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