Rand at 11-month high against pound amid hard-Brexit concerns
The rand was slightly softer against the euro and dollar on Tuesday morning, but flat against the pound, amid growing concerns the UK is headed for a no-deal exit from the EU.
Experts say neither the UK nor the EU is ready for a no-deal Brexit after more than three years of intense but fruitless talks, London Capital Group senior market analyst Ipek Ozkardeskaya said in a note.
“So, Boris Johnson and his government [have] decided to rip off the bandage as quickly as possible to halt the prolonged negotiation period, even if it means further economic instability for the UK with multiple years, if not decades of bilateral trade negotiations with the EU countries and an immediate hit for Northern Ireland,” Ozkardeskaya said.
At 9.40am the rand was 0.39% weaker at R14.2166/$, 0.35% softer at R15.8395/€ while remaining flat at R17.3105/£. The euro was flat at $1.1136. The rand has appreciated 3.04% against the pound so far in 2019, while having depreciated 1.2% against the dollar over the same period.
Local focus is on employment data in the second quarter, due later on Tuesday, although most market focus this week remains on the US Federal Reserve policy announcement on Wednesday.
Source: businesslive.co.za
