The rand was a lot weaker on Friday morning, reacting to wild swings in the dollar, which has been battling to find a suitable range throughout the week. The volatility in the dollar came as markets second-guessed candidates thought likely to take over from Janet Yellen, whose term as the US Fed chairperson expires early in 2018. Economist John Taylor, who the markets perceive to be hawkish, is vying for the job, along with other candidates. There has also been uncertainty about the trajectory of US interest rates in 2018, given the relatively low inflation profile in the US. But the dollar was a lot stronger against a host of other currencies in early trade, boosted in part by optimism over tax cuts, which it is hoped would ultimately lead to high inflation and higher rates. "The most recent news regarding the Trump tax cut is that the US senate adopted a 2018 budget resolution, which Republican leaders have agreed to accept and indicates a degree of urgency to pass the tax reform,...
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.