Rand jumps more than 10c to dollar as euro rebounds on pressure for earlier hikes
The rand firmed more than 10c against the dollar on Thursday afternoon in reaction to the euro strengthening against the dollar. The rand usually firms on a stronger euro and loses ground on a stronger dollar. The euro was firmer after members of the European Central Bank (ECB) indicated that the central bank should speed up its rate hikes in 2019. The bank is set to end its stimulatory asset-buying programme 2018 and start a rate-hiking process toward the end of 2019. Its official position is for interest rates to stay unchanged until "at least through the summer of 2019". However, some analysts said that would leave the ECB "behind the curve".
Market focus has now shifted to the release of the minutes of the US Federal Reserve’s most recent meeting later in the day, which could indicate the extent of support within the federal open market committee (FOMC) for a more hawkish stance on interest rates. "Should the minutes be hawkish, we can expect the dollar to gain ground, and...
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