The rand extended its losses against the dollar on Tuesday afternoon‚ tracking the euro‚ which weakened after an earlier speech by European Central Bank (ECB) governor Mario Draghi.
Analysts said Draghi’s speech itself offered few new clues as to future policy‚ but could have highlighted the relatively more hawkish stance on monetary policy tightening that had been struck by the US Federal Reserve.
The moves in the euro simply appeared to be an extension of the initial post-ECB meeting decline last week‚ following a brief period of consolidation‚ said Oanda analyst Craig Erlam.
Speeches from Fed officials‚ including outgoing chair Janet Yellen‚ are expected later.
The rand has been on a weakening trend since the medium-term budget policy statement disappointed the market in late October. Analysts expect domestic issues to keep a cap on rand gains‚ ahead of ratings agency reviews on November 24 and the ANC elective conference in December.
Subsiding global risk aversion wasn’t enough to enable the rand to strengthen meaningfully‚ despite optimism spilling over into risk currencies‚ said TreasuryOne currency dealer Phillip Pearce.
At 3pm‚ the rand was R14.2048 to the dollar from R14.0978‚ at R16.429 to the euro from R16.3653 and at R18.6544 to the pound from R18.5701.
The euro was at $1.1565 from $1.1610.
Rand weakens above R14.20/$ as euro comes under pressure
Analysts said Draghi’s speech itself offered few new clues as to future policy‚ but could have highlighted the relatively more hawkish stance on monetary policy tightening that had been struck by the US Federal Reserve.
The moves in the euro simply appeared to be an extension of the initial post-ECB meeting decline last week‚ following a brief period of consolidation‚ said Oanda analyst Craig Erlam.
Speeches from Fed officials‚ including outgoing chair Janet Yellen‚ are expected later.
The rand has been on a weakening trend since the medium-term budget policy statement disappointed the market in late October. Analysts expect domestic issues to keep a cap on rand gains‚ ahead of ratings agency reviews on November 24 and the ANC elective conference in December.
Subsiding global risk aversion wasn’t enough to enable the rand to strengthen meaningfully‚ despite optimism spilling over into risk currencies‚ said TreasuryOne currency dealer Phillip Pearce.
At 3pm‚ the rand was R14.2048 to the dollar from R14.0978‚ at R16.429 to the euro from R16.3653 and at R18.6544 to the pound from R18.5701.
The euro was at $1.1565 from $1.1610.
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