Rand softens a little as market liquidity increases

The rand was a little weaker on Thursday afternoon, with analysts noting that the local currency is trading resiliently despite negative domestic news.

Ratings agency Fitch Ratings on Wednesday decided to keep SA’s sovereign rating at one notch below junk with a negative outlook. Global markets were also not not showing much reaction to the impeachment of the US President Donald Trump. 

The rand continues to perform resiliently, apparently ignoring various local factors that could potentially have weighed on it, said Nedbank Corporate and Investment Banking analysts in a  note.

The dollar was little moved after the House of Representatives voted to impeach Trump, given the likelihood that he will be acquitted once the vote goes to the Senate.

The UK will publish retail sales later on Thursdya, while the Bank of England is set to release its interest rate decision. 

At 1.13pm, the rand was 0.17% weaker at R14.336/$, 0.36% down at R15.9626/€ and 0.31% softer at R18.777/£. The euro strengthened 0.18% to $1.1135.

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Source: businesslive.co.za