Rand 'continues to outperform massively' ahead of central bank meetings
THE rand was on a firmer footing at the start of what promises to be a busy week, dominated by central bank policy meetings.The Reserve Bank’s monetary policy committee will deliver its decision on interest rates on Thursday after a three-day deliberation. The US Federal Reserve and Bank of Japan are also due to announce decisions on rates this week."As far as the rand is concerned, the general trend towards [getting] stronger ... continues," Standard Bank trader Warrick Butler said.We remain short dollars from last week based on our technical view and will add to this position on a break of R14.05/$ or a daily close below R14.10/$."The rand still managed to finish last week on a positive note despite the intense volatility that saw the currency swing from R14.21/$ to 14.59/$.Rand Merchant Bank currency analyst John Cairns attributed the rand’s relative strength to the unwinding of the political risk premium that was attached to uncertainty over the future of Finance Minister Pravin...
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