Rand at seven-month high to the dollar
The local currency is slightly weaker after gaining against the greenback overnight, following a dovish US Federal Reserve statement
The rand was slightly weaker on Thursday morning, paring the significant gains it made against the dollar overnight, following a particularly dovish comments from the US Federal Reserve. The Fed’s statement was expected to be dovish, but the announcement that it no longer plans to raise interest rates twice in 2019 surprised many analysts. On the whole, the risk environment remains exceptionally favourable for emerging-market assets, said Rand Merchant Bank analyst Nema Ramkhelawan-Bhana. The market was now pricing a 30% chance of an interest-rate decrease in the US in the first quarter of 2020. At 9.30am the rand was 0.28% weaker at R13.3512/$, 0.57% softer at R15.3722/€ and had fallen 0.56% to R17.5634/£. The euro was 0.29% weaker at $1.1514. The benchmark R186 government 10-year note was at 8.62% from 8.725%. The rand gained 2.07% against the dollar on Wednesday, its second best performance of 2019. The local currency had tested a resistance level of R13.30/$ and, after a move of...
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