Rand stabilises as focus turns to global markets
Receding political concerns have also put a floor under the euro, which by default pressured the dollar
The rand was relatively stable on Thursday morning as the focus returned to overseas markets, where the euro stood out against the dollar amid speculation that the European Central Bank (ECB) could soon announce plans to exit its stimulus measures.The receding political concerns have also put a floor under the euro, which by default pressured the dollar, thus taking pressure off the rand, which earlier in the week reeled from the shock local GDP figures.The local economy contracted by a more than expected 2.2% in the first quarter, prompting a selloff in local assets, which reflected in the weaker currency and higher bond yields."With the US dollar giving back a large portion of its gains since the end of May, some positive sentiment and stability have returned to emerging market currency markets in general," said Deon Kohlmeyer, analyst at Rand Merchant Bank.The rand and local bonds were recently caught up in the whirlwind of poor sentiment towards emerging markets, which played ou...
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