Rand firms in mild emerging-market recovery
The local currency is slightly stronger against the pound on Monday morning, amid reports that UK Prime Minister Theresa May may be on her way out
The rand was marginally firmer on Monday morning, ahead of what could be a tumultuous week for the local currency.
A long-awaited ratings decision by Moody’s Investors Services looms on Friday, while the local market will also be keeping a close eye on the Reserve Bank interest rate decision on Thursday.
No change in rates is expected, but the tone of the Bank will be closely watched, amid the expectation that it will strike a hawkish note.
Global risk is also elevated, with markets focused on Brexit developments. Reports on Sunday suggested that UK Prime Minister Theresa May could soon be forced out of office, amid growing dissatisfaction over the state of Brexit negotiations.
At 9.45am the rand was 0.55% stronger at R19.0604/£, 0.12% firmer at R14.4788/$ and 0.08% up at R16.3733/€. The euro was 0.11% firmer at $1.1308.
Most emerging-market currencies were slightly firmer, with the rand trailing a rebounding Turkish lira.
The lira fell almost 5.5% against the dollar on Friday, after signs of escalating tension between Turkey and the US over the latter country’s call to recognise Israeli sovereignty over the Golan Heights.
Turkey’s central bank said on Monday that it would intervene to support the currency if necessary, reported Dow Jones Newswires.