Rand strengthens as Brexit fears weigh on the pound

The rand was stronger against the pound on Thursday morning as Brexit fears mount after UK Prime Minister Boris Johnson’s request to prorogue parliament. 

Johnson said in a statement on Wednesday that he had asked Britain’s Queen Elizabeth to close the current parliamentary session in the second sitting week of September, and to resume on October 14, just 17 days before the Brexit deadline. 

“Despite what number 10 would have us believe, it’s quite clear that this move is a highly political one aimed at preventing MPs from blocking no-deal, forcing individuals to show their hand and at the same time, sending a message to Brussels that the government is serious about leaving on October 31,” Oanda senior market analyst Craig Erlam. 

At 9.50am, the rand had firmed 0.54% to R18.7264/£, 0.29% to R15.3682/$ and 0.3% to R17.0232/€. Gold was up 0.1% to $1,542.485/oz and platinum 1.1% to $913.53. Brent crude lost  0.33% to $60.24 a barrel. 

Statistics SA is scheduled to publish the producer price index for July later on Thursday. A deceleration to 5.3% year on year, from 5.8% in June, is the consensus according to a Bloomberg poll.

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Source: businesslive.co.za