Local currency is firmer against dollar at midday on Thursday‚ as expectations among traders of local rate hike later in day lessen
The rand was firmer against the dollar at midday on Thursday‚ as expectations among traders of a local rate hike later in the day lessened.
At 11.35am‚ the rand was at R14.1283 to the dollar from a previous close of R14.1673.
Against the euro it was at R15.1090 from R15.0999 previously and at R21.5456 against the pound from R21.5812.
The euro was at $1.0693 from a close of $1.0659.
Standard Bank head of research Walter de Wet said lower expectations of a local rate increase were driven in part by October Federal open market committee (FOMC) minutes‚ which were released on Wednesday.
The minutes showed there was still no consensus on whether the committee would hike rates next month.
“While a weaker rand may tip the Reserve Bank into hiking at today’s meeting‚ we believe that the monetary policy committee may prefer to wait until after the FOMC meeting in December to gauge how currency markets may react‚” said Mr de Wet.
He said that even if the Reserve Bank increased rates on Thursday‚ it would have little effect on the rand.
“Much of the rand weakness at this point is due to dollar strength and weak commodity prices.”
Rand stronger ahead of local rate decision
The rand was firmer against the dollar at midday on Thursday‚ as expectations among traders of a local rate hike later in the day lessened.
At 11.35am‚ the rand was at R14.1283 to the dollar from a previous close of R14.1673.
Against the euro it was at R15.1090 from R15.0999 previously and at R21.5456 against the pound from R21.5812.
The euro was at $1.0693 from a close of $1.0659.
Standard Bank head of research Walter de Wet said lower expectations of a local rate increase were driven in part by October Federal open market committee (FOMC) minutes‚ which were released on Wednesday.
The minutes showed there was still no consensus on whether the committee would hike rates next month.
“While a weaker rand may tip the Reserve Bank into hiking at today’s meeting‚ we believe that the monetary policy committee may prefer to wait until after the FOMC meeting in December to gauge how currency markets may react‚” said Mr de Wet.
He said that even if the Reserve Bank increased rates on Thursday‚ it would have little effect on the rand.
“Much of the rand weakness at this point is due to dollar strength and weak commodity prices.”
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