The consumer price index rose 0.2% last month, matching the gain in June, the Labour Department said on Thursday.
"Despite the annualised headline CPI rate re-accelerating slightly in July, the gentle 0.2% monthly acceleration for both core and headline CPI should soothe markets and the Fed," said Nathaniel Casey, investment strategist at wealth management firm Evelyn Partners. Futures on the benchmark fed funds rate have priced in a pause in rate hikes at the next meeting and for the rest of the year.This is positive news for the rand as higher US interest rates would make rand assets less appealing to global investors looking for yield. After briefly breaking through R19/$ on Wednesday for the first time in more than a month, the rand gained ground to trade at R18.73/$ by early Thursday evening.