Rand weaker in thin trade as US and Chinese markets close for public holidays
The rand was softer in subdued trade on Monday afternoon, as the dollar traded largely flat.The closure of US and Chinese markets on the day kept most market players on the sidelines, with the dollar showing little movement against the euro.The dollar has remained on the back foot in 2018, despite the US Federal Reserve indicating it was set to raise interest rates three times this year. The burgeoning fiscal and trade deficits in the US are keeping the dollar in check.The US federal deficit is likely to exceed $1-trillion in 2019, or 5.2% of GDP, Barclays Research analysts said. "The US is embarking on large-scale fiscal stimulus at full employment."Barclays said there was an increasing risk of a hard landing in the US, with the Fed’s job likely to become more complicated over time. "But highly expansionary US fiscal policy should prop up global growth via trade," the analysts said.At 3pm, the rand was at R11.6568 to the dollar from R11.5999, at R14.4645 to the euro from R14.3878, ...
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