Rand hits best level in a month as emerging markets rally on softer dollar
The rand could be heading for R13.20 to the dollar, as the latter weakens following the release of subdued US wage-growth numbers
The rand firmed 1%, or more than 15c, against the dollar on Monday to reach its best level in a month as renewed risk-on sentiment hit markets on subdued US data. US data released on Friday reflected tepid wage growth in that economy, making it less likely that the US Federal Reserve would adopt a more aggressive stance on interest rates. The dollar weakened to just below $1.18 against the euro, with other emerging-market currencies mirroring the rand’s strength. The lira was 1.2% stronger at 4.5221 to the dollar after threatening to weaken above five to the dollar in June. "The rand’s gains below R13.50 technically created the potential for an attempt on the R13.20 level, but local headlines are likely to continue to weigh on the rand," analysts at Nedbank Corporate and Investment Banking said.
The pound clawed back some gains against the dollar after earlier weakening on the resignation of UK Brexit minister David Davis. The pound was marginally supported on indications that...
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