Rand's losses reverse four sessions of gains

The value of the monetary unit of the African continent's largest economy lost value for the first time in four trading sessions on Wednesday, according to Bloomberg.

The South African rand's drop provides the nation's central bank more wiggle room to slash interest rates as part of the strategy to bolster development and growth. The consumer inflation rate went from 5.7 percent in May to 5.5 percent in June, according to Statistics South Africa.

"We keep a negative view on the rand, as it is vulnerable to renewed market volatility and the bleak global economic outlook," states an email authored by director of emerging-market strategy Esther Law with Societe Generale SA and colleagues to Bloomberg. "The currency will not find support from the Reserve Bank."

The Monetary Policy Committee of the South African Reserve Bank is likely to keep the repurchase rate unchanged at 5.5 percent when it convenes on Thursday, according to 16 of 18 economists polled by Bloomberg.

Reuters reports the central bank was convening for three days of meetings beginning Tuesday and the institution is slated to sell 2.1 billion rand of bonds set for maturity in 2023, 2036 and 2048.