Rand holds steady as investors continue to wait for interest-rate decisions
The rand was generally steady against the dollar on Tuesday just before midday, like most emerging-market currencies.The US Federal Reserve’s much anticipated, interest-rate increase on Wednesday could see investor-capital flight from emerging markets.Theory dictates that rising interest rates and a firmer dollar could make dollar-denominated debt obligations difficult to pay, thus hurting emerging economies.The rand closed firmer against the dollar on Monday, with local political jitters ahead of the ANC’s national executive conference hanging over the market.Sasfin fixed-income traders said this unpredictable near-term political outlook may encourage some investors to hold back on re-employing turnover attributed to the reinvestment of December bond coupon flows, into bonds.At 11.30am‚ the rand was at R13.5935 to the dollar from R13.6073, at R16.0119 to the euro from R16.0171‚ and at R18.1631 to the pound from R18.1496.The euro was at $1.1780 from $1.1770.
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