Rand trades firmer before Reserve Bank’s decision, with dollar under pressure
The rand was firmer at midday on Monday on a softer dollar and ahead of the South African Reserve Bank’s interest-rate decision on Tuesday. The rand remains range bound amid a tentative tone in the market on an inconsistent dollar, ahead of the Bank’s decision, Momentum SP Reid analysts said. The bias towards the dollar remains after further weakness amid protectionist sentiment, following Donald Trump’s inauguration speech in the US, in which he made it clear the interests of the country came first under his administration. At the same time, the euro has not made convincing gains on the greenback. Gains by the pound against the dollar have also been marginal over the short term. No change in local interest rates is expected, but the Bank may issue a more hawkish statement. Consumer inflation averaged 6.4% in 2016, but peaked at 6.8% in December. Since the last monetary policy committee (MPC) meeting, the rand has appreciated about 3% against the dollar and oil prices have stabilise...
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