Rand gains on positive emerging-market sentiment
Standard Bank trader Warrick Butler says the local currency’s next path is a tough call, he will keep a close eye on the price action in the next few weeks
THE rand was a relatively well-supported on Monday morning after the second US presidential debate favoured Democratic nominee Hillary Clinton over her Republic rival Donald Trump.The Mexican peso outperformed relative to the dollar in a move that boosted sentiment across the emerging-market currencies.The rand rallied through the R13.80 to the dollar handle, partly drawing strength from the weaker-than-expected US nonfarm payroll data on Friday, which interrupted the rally in the dollar.The US economy created 156,000 jobs in September, against market expectations of 175,000.Standard Bank trader Warrick Butler said the rand’s next path was a tough call."Recent trend suggests lower [stronger] but with this month’s medium term budget speech and a possible downgrade [of the country’s sovereign credit rating] in December looming, the rand could also find itself under the cosh for the remainder of the year."It’s too tough to call at the moment and we will have to closely monitor the pric...
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