Rand trades slightly firmer as Donald Trump’s address nears
If Trump comes across as anything ‘less than an authoritative figure’ with clear vision and goals, a weaker dollar is likely, TreasuryOne’s Andre Botha says
The rand was slightly firmer against the dollar on Tuesday afternoon as the hours drew closer to US President Donald Trump’s address to congress. The address has kept the market in wait-and-see mode as it is expected to give clarity on promises Trump made to stimulate the US economy, with the eventuality of this being an increase in interest rates. TreasuryOne currency dealer Andre Botha said the event would move markets because of the uncertainty it presented. If Trump comes across as anything "less than an authoritative figure" with clear vision and goals, a weaker dollar is likely, said Botha. Momentum SP Reid Securities analysts said that while recent data had held up fairly well in the US market, participants would adjust their focus as they looked toward the possibility of an interest-rate increase being announced in March. The US commerce department reported that GDP had expanded at an inflation-adjusted annual rate of 1.9% in the fourth quarter of 2016. This was below the 2....
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