Rand is stable, despite surprisingly positive US third-quarter GDP growth
The growth figure has increased the possibility of a US interest-rate increase in December, which is bound to weigh on the rand and local bonds
The rand inched marginally weaker late on Friday after US third-quarter preliminary GDP data climbed at a rate of 2.9%, much better than market expectations for growth of 2.6%. The growth rate was also much stronger than the growth rate of 1.4% in the second quarter and the first quarter’s growth rate of 0.8%. The growth figure has increased the possibility of a US interest-rate increase in December, bound to weigh on the rand and local bonds. The rand has fallen 1.7% in October and is now stable against the greenback year on year. The local currency has managed to recover most of its losses sustained during and after Finance Minister Pravin Gordhan’s medium-term budget policy statement on Wednesday. At 3.24pm, the rand was at R13.8718 to the dollar from Thursday’s R13.8686. It was at R15.1548 to the euro from R15.1109 and at R16.8234 to the pound from R16.8671. The euro was at $1.0925 to the dollar from $1.0896 in the previous session. Investors are, however, concerned that SA’s cr...
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