Rand slightly firmer as market eyes Brexit

The rand was slightly firmer against major global currencies on Monday morning, benefiting slightly from events on Sunday.

China’s top central banker said on Sunday that China had agreed not to engage in competitive devaluation of its currency, saying that Washington and Beijing were inching closer to consensus, Dow Jones Newswires reported.

US Federal Reserve chair Jerome Powell also gave an interview at the weekend that was upbeat on the US economy’s prospects.

All eyes, however, are on Brexit this week. UK Prime Minister Theresa May’s draft agreement will be put to the test during a vote on Tuesday. May has already indicated that should her deal not get backing from legislators, she would request an extension of the March 29 Brexit deadline.

“Once again more weight will be given to the Brexit vote and US-China trade talks and there is some risk to headlines driving the market,” said TreasuryOne senior currency dealer Andre Botha.

At 9.45am the rand was 0.23% firmer at R14.3977/$, 0.12% stronger at R16.1899/€ while remaining flat at R18.7314/£.

The euro was 0.1% weaker at $1.1244. 

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Source: businesslive.co.za