Rand slightly softer after hitting best level in more than 18 months
The rand eased on Friday morning, after reaching its best level in more than 18 months on Thursday. The rally in the local currency came as the dollar softened against a range of major currencies following this week’s release of the minutes of the US Federal Reserve’s most recent meeting. "The rand initially liked the budget but the unusually large moves yesterday are more related to global issues," Rand Merchant Bank analyst John Cairns said. "Market focus on the Fed minutes has mostly been around the fact that some members felt rates might need to be hiked ‘fairly soon’ but market pricing of hikes has not changed: 20%-25% for March, 70%-80% for June." The softer dollar has supported the gold price, which hit a three-month high of $1.253.41/oz. Nedbank Corporate and Investment Banking (CIB) analysts said the appointment of Brian Molefe an MP posed a potential risk to the markets. On the data front, there are no major global or local releases due on Friday. US new home sales are out...
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