The rand was slightly weaker on Monday just before midday, like other emerging market currencies. The week’s focus is on the US Federal Reserve’s policy meeting on Wednesday. Markets expect to gain insight into the US’s bond-buying programme, which it is planning to unwind in the near future. Emerging markets have paid close attention to recent global central bank policy stances, which caused a bond rally more than a month ago, and can still affect capital flows to emerging markets. Last week the European Central Bank (ECB) and the Bank of Japan (BoJ) left interest rates on hold, which is also what is expected of the Fed on Wednesday. TreasuryOne currency dealer Phillip Pearce said the emerging-market rally happened despite expectations of global monetary policy shifting towards tightening, with emerging markets having experienced a good inflow of funds from global investors seeking a yield advantage. At 11.31am‚ the rand was at R12.9762 to the dollar from R12.9172‚ at R15.1221 to t...
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