The rand reversed earlier losses to trade firmer against major global currencies on Wednesday afternoon, buoyed by international data releases, but with market focus still remaining on the US Federal Reserve. Domestic news was negative, but the rand continues to take its direction from offshore events, with both UK producer inflation data coming in lower than expected, while eurozone industrial production numbers also missed their target. The major event on Wednesday remains the US Fed’s interest-rate decision, expected at 8pm local time. The market has almost entirely priced in a 25 basis-point increase, although the commentary from Fed officials will be closely scrutinised. Despite the growing interest rate differential between the US and eurozone, the dollar remains only slightly better bid, suggesting the market was waiting for the Fed’s forward guidance, said BK Asset Management MD Boris Schlossberg. The rand usually tracks the euro, suggesting further weakness for the local un...
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