MARKET WRAP: Rand remains firmer following US Fed news
The rand had its best day against the dollar this week on Thursday after the US Federal Reserve said it was on track to raise interest rates further in 2019.
After initially firming, the dollar weakened late on Wednesday, following the release of the latest monetary policy stance by the Fed, with chair Jerome Powell confirming that two further rate increases could be expected in 2019. “Powell indicated two further hikes next year, instead of three,” said TreasuryONE senior currency dealer Andre Botha.
At 6.05pm, the rand had gained 0.69% to the dollar to R14.2891, 0.41% against the euro to R16.3052, and 0.48% to the pound at R18.0734.
The rand had weakened to as much as R14.3947 against the dollar, before recovering to R14.1088 in the early hours of Thursday morning. This resulted in firmer local government bonds, with the yield on the benchmark R186 dipping below 9% for the first time since late August, according to Iress data.
The JSE ended the day weaker, with gold and platinum miners faring worst, despite a rise in their metal prices. The all share fell 0.43% with the platinum and gold indices falling 1.49% and 0.79%, respectively. General retailers bucked the trend with the index rising 1.99%.
Oil continued its slide with Brent crude last seen down 3.23% to $54.82. It is now down more than 7% in December, after a 20% fall in November.
Source: businesslive.co.za
