Rand firms as market pins hope on stimulus
Expectations that weak economic data will prompt stimulus measures from major global economies helped support the rand on Monday morning, with the local currency faring best against the dollar.
Chinese exports to the US slumped 16% in August, a surprise to the market, although analysts noted forthcoming US-China trade talks could bolster sentiment.
China has responded by lowering lending rates, and the country’s determination to fight its economic slowdown encouraged investors to buy riskier assets on Monday morning, but gains were timid, London Capital Group senior market analyst Ipek Ozkardeskaya said in a note.
At 10.29am the rand was 0.15% firmer at R14.781/$, while remaining flat at R16.3126/€ and R18.1691/£.
All eyes this week are on the European Central Bank (ECB) monetary policy announcement on Thursday, with a stimulus package from the bank expected that could include a cut to lending rates.
Source: businesslive.co.za
