The rand was little changed against major currencies on Thursday morning‚ holding on to gains from a rally last night as the dollar slid against most currencies.
The dollar reached a 30-month low against the euro on Wednesday evening‚ after the US Federal Reserve concluded its two-day monetary policy meeting with a statement that was widely perceived as dovish.
Fed officials voted unanimously not to change interest rates‚ but said a process of unwinding its $4.5-trillion dollar balance sheet would begin “relatively soon”.
Although the market interpreted the statement Fed as dovish‚ the local unit had yet to breach the technically significant R12.80 level‚ said Nedbank Corporate and Investment Banking analysts.
The rand’s performance was solely a function of dollar weakness‚ TreasuryOne dealer Phillip Pearce said.
Risk-on trade following the Fed statement was likely to remain the main focus on Thursday‚ analysts said.
At 9.12am‚ the rand was at R12.8958 to the dollar from R12.8989‚ at R15.1202 to the euro from R15.1423‚ and at R16.9371 to the pound from R16.9276.
The euro was at $1.1725 from $1.1738.
Source: TMG Digital.