The rand was slightly weaker against the dollar on Thursday morning, after an overnight rally, as most emerging-market currencies traded in positive territory. Emerging markets welcomed the news of the US Fed’s dovish stance on interest rates and announcement that it would start shrinking its balance sheet "relatively soon", which some market participants expect to be in September. Increased interest rates in the US may put pressure on emerging markets, including SA‚ which could see a capital flight to developed markets. Rand Merchant Bank analyst Deon Kohlmeyer said given the relatively good news for emerging-market currencies, the rand had dipped back towards the R12.90/$ level. At 11.30am‚ the rand was at R12.9118 to the dollar from R12.8989‚ at R15.1367 to the euro from R15.1423‚ and at R16.9673 to the pound from R16.9276. The euro was at $1.1723 from $1.1738.
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