Rand slightly weaker as focus returns to global risk events
The rand was marginally weaker on Friday morning, but held onto most of Thursday’s gains, amid some risk-off trade on global markets.
The rand firmed more than 1% on Thursday after the Reserve Bank opted to raise interest rates, a move it said followed a clear need to prioritise price stability and policy flexibility in the future, rather than immediate monetary stimulus.
Global markets are watching for an agreement on a draft Brexit deal on Sunday, with EU and UK officials set to meet to try and settle some outstanding issues, including Spanish concerns about Gibraltar and broader concerns over fisheries.
But, even if a deal is reached, UK Prime Minister Theresa May will still need to put it before the UK parliament.
“With her deal being widely criticised by MPs across the political spectrum, be they leave voters or remainers, this is not going to be an easy job, although the alternative of no deal Brexit may be enough to convince her doubters to side with her and get it over the line,” said Oanda analyst Craig Erlam.
The US-China trade war is also of concern ahead of a meeting between Chinese and US officials at the end of November.
At 9.30am the rand was 0.26% weaker against the dollar at R13.7944, 0.26% against the euro at R15.7408 and 0.18% against the pound at R17.7473. The euro was flat at $1.1411.
Source: businesslive.co.za
