Rand perks up on improved global risk appetite

The rand was a shade stronger on Monday morning‚ partly reflecting an improvement in global risk appetite.

The rand was a shade stronger on Monday morning‚ partly reflecting an improvement in global risk appetite. Picture FILE

In the absence of fresh developments in the US-North Korean standoff‚ markets appeared more willing to dip into risky assets.

For the better part of last week‚ markets were on edge as the war of words between Washington and Pyongyang threatened to boil over into a military confrontation.

The rand changed hands at about R13.36 to the dollar in early trade on Monday — a notable improvement on the lows of R13.54 seen last week.

The rand’s improving fortunes were also due to a weaker dollar‚ following weaker than expected US inflation figures on Friday.

US consumer prices rose at an annual rate of 1.7% in July‚ up slightly from 1.6% in June‚ but lower than the expected 1.8%.

The muted inflation pressures could persuade the US Federal Reserve to increase interest rates at a slower pace‚ which could keep emerging-market currencies like the rand relatively well supported.

At 9.21am‚ the rand was at R13.3681 to the dollar from R13.4421‚ at R15.8070 to the euro from R15.8895 and at R17.3903 to the pound from R17.4750.

The euro was at $1.1824 from $1.1823.

-BusinessLIVE

Source: TMG Digital.


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