Cyril Ramaphosa’s Sona fails to boost rand
At 9.50am the rand was 0.62% weaker at R14.4313/$, 0.78% softer at R16.3198/€ and 0.54% weaker at R18.3205/£. The euro was 0.16% firmer at $1.1308.
The rand, along with emerging-market currencies, has been boosted this week by dovish signs from the US Federal Reserve, with markets now pricing in a 100% chance of a 25 basis point cut in that country by the end of July.
Focus now shifts to next week’s meeting between US President Donald Trump and Chinese President Xi Jinping, as investors wait to see if there will be progress in resolving the US-China trade war.
Some focus is also on the rising tension in the Middle East, amid reports that the White House held back on planned airstrikes on Iranian facilities overnight. This follows Iran’s alleged shooting down of a US drone over the Persian Gulf earlier this week.
Source: businesslive.co.za
