The rand perked up on Monday morning, making a good impression at the start of a busy week, the highlight of which will be the Reserve Bank’s monetary policy committee’s decision on interest rates on Thursday. The committee, which is widely expected to leave the repurchase rate unchanged, is likely to flag the renewed volatility in the currency, which has the potential to shape the outlook on inflation. The rand has been volatile since the last rate-setting committee meeting in March, swinging from highs of R12.31/$ to lows R13.95/$ when Pravin Gordhan was fired as finance minister in a controversial Cabinet overhaul. But a relatively favourable sentiment towards emerging markets has helped cushion the local currency against the blows of local politics, which prompted the S&P Global Ratings and Fitch in March to downgrade the country’s debt. "Event risk is concentrated from Wednesday evening through Thursday. [US Federal Reserve] minutes are the highlight, with markets looking for s...
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