The rand was slightly weaker shortly before midday on Monday, giving up some of the gains made last week. The dollar found some support at the weekend, after US Federal Reserve chairperson Janet Yellen said soft inflation should not be an obstacle to further rate hikes, citing ongoing strength in the economy. The rand closed Friday’s trade 1.59% firmer against the dollar‚ supported by a softer than expected US inflation print, and the reinstatement of charges against President Jacob Zuma. Given that a December rate hike was almost entirely priced in, the dollar will be driven by longer-term expectations, said FXTM chief market strategist Hussein Sayed. The three rate hikes pencilled in by the Fed in 2018 was nowhere near markets’ expectations of only one. The main risk facing the greenback was who would lead the Fed after Janet Yellen departed, Sayed said. Favourable sentiment towards emerging markets, coupled with the Supreme Court of Appeal judgment against President Jacob Zuma, b...
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