Rand mixed as dollar bounces 0.5% against the euro

The rand was mixed against major global currencies on Monday afternoon, weakening against a resurgent dollar, although benefiting from setbacks for the euro and pound.

The dollar has been boosted by last week’s hawkish commentary from the US Federal Reserve.

The price of oil rose sharply on Monday, boosted by news at the weekend that Saudi Arabia would decrease exports by 500,000 barrels a day in December.

At 2.40pm the rand was 0.24% weaker against the dollar at R14.3673, but 0.26% stronger against the pound at R16.1857 and up 0.12% to the euro at R18.4907.

The euro was 0.49% softer against the dollar at $1.1266.

The euro and pound were under strain from political developments. Brexit negotiations continue this week, while further developments regarding the EU’s conflict with Rome over the Italian budget deficit are in the offing. The Italian government has until Tuesday to submit a revised budget plan, after its previous one, which contained increased deficit spending, was rejected by Brussels.

Investors are keeping their eyes on US inflation data, which is due out on Wednesday.

Trade was thin due to the Veteran’s Day holiday in the US. TreasuryOne senior currency dealer Andre Botha said the holiday usually entailed thin liquidity, but also made risk assets vulnerable to knee-jerk reactions.

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Source: businesslive.co.za