Rand weakens as investors look towards local interest-rate decision
The rand was weaker against the dollar on Monday just before midday, with local investors awaiting the Reserve Bank’s interest-rate decision.
The general market consensus was that the Bank would cut interest rates by 25-basis points on Thursday.
However, TreasuryOne currency dealer Andre Botha said that with the recent increase in the oil price, the situation could change a little from this consensus expectation.
"The increase in oil price could force the monetary policy committee meeting to sit on their hands as the oil price could affect the inflation forecasts. Two weeks ago, it was almost a dead certainty that the Bank would cut interest rates, but recent developments could sway the decision to no cut."
Consumer inflation data for August will be released on Wednesday. Most analysts and economists expect it to lift slightly to 4.9% year on year, from 4.6% in July.
The US Federal Reserve Bank is will release its policy statement on Wednesday at the conclusion of its two-day meeting.
At 11.30am‚ the rand was at R13.2210 to the dollar from R13.1696‚ R15.7871 to the euro from R15.7032; and R17.9105 to the pound from R17.8662.
The euro at $1.1943 from $1.1925.
The price of Brent crude was up 0.32% to $55.80 a barrel.