The rand maintained its weaker bias but was little changed against major currencies on Wednesday morning, as political sentiment weighed on the local unit. Analysts said structural weakness in the rand and a global outlook that had shifted investors’ interest from emerging markets could put some pressure on the local currency. On Tuesday US Federal Reserve chairwoman Janet Yellen reiterated her view that interest rates would increase, while the unwinding of a $4.5-trillion balance sheet should happen "gradually and predictably". The Fed has pencilled in a third interest-rate increase for later in the year, and three in 2018. Sentiment was loaded against the local currency following news reports that Deputy Finance Minister Sfiso Buthelezi had questioned the efficacy of the Reserve Bank’s inflation-targeting policy, in apparent support for Public Protector Busisiwe Mkhwebane’s call for the central bank’s mandate to change. While the rand weakened due to dollar and euro strength on Tu...
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