Rand trades weaker with markets in alert mode over geopolitical tension
The rand was slightly weaker against the dollar and the euro, but extended losses against the pound after the British currency crossed $1.35 for the first time in a year. While the market is on the alert over the tension created by North Korea’s recent missile launch over Japan, reaction has been controlled, analysts said. A missile launch by North Korea earlier this month saw investors scurrying towards safe-haven assets such as gold, with the price of the metal rallying. The spot price of gold was, however, down by 0.36% to $1‚325.02 an ounce. The rand weakness against the pound came on the warning from the Bank of England of possible interest-rate increases in the future, to contain inflation. It has kept interest rates unchanged so far, despite rising consumer inflation in the UK. The rand closed 1.31% weaker against the pound on Thursday. On Thursday, US headline inflation came in at 1.9% in August on a year-on-year basis from an expected 1.8%, which renewed expectations of an ...
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