The rand jumped to R13.44 to the dollar on Wednesday night after US Federal Reserve chairman Jerome Powell’s interest rate announcement, but had calmed back to R13.28 to the dollar by 6.30am on Thursday morning. The US central bank raised its interest rate from 1.75% to 2% as expected, but Powell’s commentary included bad news for emerging-market currencies in that he is likely to announce two further 25 basis point increases in 2018. Attention now shifts to the European Central Bank (ECB) which is scheduled to announce its interest rate decision at about 2pm. ECB president Mario Draghi is expected announce that the central bank’s interest rate remains at zero, but he may announce an end to the central bank’s €30bn a month bond purchase programme. The rand was trading at R15.68 to the euro and R17.78 to the pound. Thursday is a quiet day on the JSE results front, but a busy day for economic data, with many more pieces to the second quarter GDP puzzle appearing following Wednesday’s ...
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.