The rand was 0.38% firmer against the dollar on Monday afternoon while its peer emerging-market currencies were mostly weaker, ahead of the US Federal Reserve’s interest-rate announcement on Wednesday. The local currency has been resilient in the face of rising expectation of the Fed’s increasing the interest rate, which markets have long awaited and already priced in. When the real rate of return of holding dollars increases, so does the value of the currency, which has historically led to falling emerging-market currencies, and vice versa, Black Rock Investment Institute said in a note. The dollar, on the other hand, has been softer against other major currencies after last week’s above-expectations jobs data, which although disappointing, confirmed the likelihood of an interest-rate increase. "It’s a tough market to impress," said TreasuryOne currency dealer Phillip Pearce. At 3.25pm, the rand was at R13.1383 to the dollar from Friday’s R13.1886, at R14.0094 to the euro from R14....
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