The rand remained firmer late on Wednesday ahead of the interest-rate announcement by the US Federal Reserve’s federal open market committee later in the day‚ with no rate change expected.
The announcement was due at 8pm (CAT) on Wednesday.
Any hints of a September rate increase could move markets‚ Dow Jones Newswires reported. Markets were pricing in about a 50% chance that the Fed would raise interest rates in 2016‚ the newswire said.
Global investors will scrutinise the Fed’s statement after the rate announcement for clues on the timing of possible future interest-rate increases. There will be no media conference after the announcement — just a monetary policy statement.
The Bank of Japan will be in the spotlight on Friday‚ when it will divulge its monetary policy decision‚ with an interest-rate cut expected.
At 3.21pm‚ the rand was at R14.2984 to the dollar from R14.3638 at the previous close.
It was at R15.7244 against the euro from R15.7785 previously‚ and at R18.7601 against the pound from R18.8605 previously.
The euro was at $1.0997‚ from $1.0985 at the previous close.
The rand was firmer on expectations that the Fed would not announce an increase on Wednesday‚ although the probability has risen of late for an increase later in year‚ NKC Research analysts said.
Stronger-than-expected new home sales in the US during June‚ announced on Tuesday‚ would further stoke speculation of an interest-rate increase in the second half of the year in the world’s largest economy‚ the economist said.
Some traders said the move gave the impression that it was “helicopter money”‚ the newswire said. Helicopter money involves printing cash to directly fund government spending‚ a measure that has been shown in the past to be intensely inflationary.
- Tiso Black Star Group Digital/BDLive
Rand continues on firmer path ahead of US Fed rate announcement
The announcement was due at 8pm (CAT) on Wednesday.
Any hints of a September rate increase could move markets‚ Dow Jones Newswires reported. Markets were pricing in about a 50% chance that the Fed would raise interest rates in 2016‚ the newswire said.
Global investors will scrutinise the Fed’s statement after the rate announcement for clues on the timing of possible future interest-rate increases. There will be no media conference after the announcement — just a monetary policy statement.
The Bank of Japan will be in the spotlight on Friday‚ when it will divulge its monetary policy decision‚ with an interest-rate cut expected.
At 3.21pm‚ the rand was at R14.2984 to the dollar from R14.3638 at the previous close.
It was at R15.7244 against the euro from R15.7785 previously‚ and at R18.7601 against the pound from R18.8605 previously.
The euro was at $1.0997‚ from $1.0985 at the previous close.
The rand was firmer on expectations that the Fed would not announce an increase on Wednesday‚ although the probability has risen of late for an increase later in year‚ NKC Research analysts said.
Stronger-than-expected new home sales in the US during June‚ announced on Tuesday‚ would further stoke speculation of an interest-rate increase in the second half of the year in the world’s largest economy‚ the economist said.
Some traders said the move gave the impression that it was “helicopter money”‚ the newswire said. Helicopter money involves printing cash to directly fund government spending‚ a measure that has been shown in the past to be intensely inflationary.
- Tiso Black Star Group Digital/BDLive
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