The rand was slightly weaker against the dollar on Tuesday just before midday as market fears mounted ahead of the US Feds’s policy meeting on Wednesday. Last week, markets put a 30% probability of an interest-rate increase by the Fed, but as the day draws closer, this has flared-up to just more than 60%. TreasuryOne dealer Andre Botha said the increase was most likely driven by inflation in the US looking better last week. The US consumer price index rose by 0.4% month on month in August, with the gain attributed to a sharp increase in fuel prices caused by Hurricane Harvey. Botha said so-called risk-currencies [emerging-market currencies] have been seen to weaken leading up to the interest-rate decision, with the rand losing 1% on Monday, as risk-currencies fell back due to the Fed hike probability increasing. The South African Reserve Bank is expected to announce its interest-rate decision on Thursday with the general market expectation being a 25 basis points rate cut. At 11.31a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.