The rand lost a bit of momentum on Thursday morning, but still fared better than it had earlier in the week.The rand bought a single dollar at R11.84 in early trade, compared with R12.11 at the start of the week.The stronger rand boosts the inflation outlook, but hurts exporters.The local currency took advantage of a weak dollar, after US Federal Reserve stuck to its gradualist approach in raising interest rates.As widely expected, the Fed raised rates by 25 basis points on Wednesday at its two-day policy meeting, but expressed concern about inflation that still ran below its 2% target."Having been anticipated, the rate hike is, for the most part, already priced in to currency markets," said Peregrine Treasury Solutions analyst Bianca Botes."The emphasis now falls on how hawkish the Fed is, rather than the actual hike. The Fed indicated that the growth forecast has been adjusted upward and rates will remain dependent on inflation as well as economic activity."The Fed’s statement und...
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.