The rand was steady at midday on Thursday after the dollar failed to react measurably to the US Federal Reserve’s decision to lift interest rates on Wednesday. The Fed’s new band of US interest rates varies between 1.5% and 1.75%, and is still relatively low by historical standards. A more bullish stance by the Fed would have supported the dollar more. A stronger dollar is usually negative for the rand. "Fed chair Jerome Powell’s noticeable caution during his conference and statement on how there was no clear indication in data of an accelerating inflation, encouraged investors to attack the dollar further," said FXTM analyst Lukman Otunuga. The rand also gained on Tuesday’s consumer inflation data, which surprised to the downside. The Reserve Bank might consider lowering interest rates in 2018. Locally, the expectation is that Moody’s will keep its credit-rating stance unchanged on Friday. Should the ratings agency announce a surprise downgrade, it would encourage a sell-off in the...
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