The rand stabilised at relatively better levels on Thursday morning, after the markets perceived the US Federal Reserve’s minutes of its most recent meeting to be leaning towards caution in raising interest rates. The Fed’s statement took the wind out of the dollar’s sails, thus helping the rand to rally towards R12.40/$, from lows of nearly R12.70 on Wednesday. "The minutes of the FOMC [federal open market committee] meeting held from May 1-2 confirm that the Fed is on course to hike in June — and two more times in the second half of 2018," Rand Merchant Bank analyst Isaah Mhlanga said in an e-mailed note to clients. "There was no change in the Fed’s assessment of economic growth outlook compared to the March meeting, but officials raised concerns that the possible trade policy outcomes could depress spending and business confidence." US President Donald Trump continues to send out mixed signals regarding the US-China trade dispute. At the weekend, the world’s leading economies agr...
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