The rand was steady in midday trade on Tuesday as the dollar lost ground against the euro ahead of US Federal Reserve chairperson Janet Yellen’s speech later in the day. Yellen is expected to confirm the Fed’s hawkish stance after increasing interest rates earlier in the month, but the market is continuing to question the policy amid the released of mixed US data on Monday. New home sales in the US came in higher than expected at 610,000 versus a 590,000 consensus forecast, but durable goods orders fell 1.1%, raising questions about the sustainability of US GDP growth for the rest of the year. Lower oil prices also continue to cast a shadow over the Fed’s hawkish policy as it could worsen disinflationary tendencies in a higher rate environment. In the late morning, Brent crude had lifted 0.6% to $46.18 a barrel, but is 18% lower for the year so far. TreasuryOne trader Andre Botha said markets were quiet ahead of Yellen’s speech. "Some volatility could flow forth as the market will b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.