Rand adds to gains after cheering dovish US Fed
Considering that there have been no interest-rate hikes since September, these comments tell the market one of two things, which is that the Fed has finally figured out where the neutral rate is, or they believe that a pause in tightening has become necessary, said BK Asset Management foreign exchange strategy MD Kathy Lien. “Chances are it’s the latter because economic data has been weakening.”
The rand gained about 20c against the greenback in overnight trade. At 9.10am the rand was 0.31% firmer against the dollar at R13.7355, 0.2% against the euro at R15.6292 and 0.25% against the pound at R17.6217. The euro was 0.1% stronger against the dollar at $1.1378.
Focus is now expected to shift to local producer inflation data, due at 11.30am local time. US President Donald Trump’s meeting with his Chinese counterpart Xi Jinping at the weekend is likely to hog investors’ attention.
Source: businesslive.co.za
